Question

If congress and the president decide an expansionary fiscal policy is​ necessary, what changes should they make in government spending or​ taxes?
a. in this​ case, congress and the president should enact policies that increase government spending and decrease taxes.
b. in this​ case, congress and the president should enact policies that increase government spending and increase taxes.
c. in this​ case, congress and the president should enact policies that decrease government spending and decrease taxes.
d. in this​ case, congress and the president should enact policies that decrease government spending and increase taxes. what changes should they make if they decide a contractionary fiscal policy is​ necessary?
a. in this​ case, congress and the president should enact policies that increase government spending and increase taxes.
b. in this​ case, congress and the president should enact policies that increase government spending and decrease taxes.
c. in this​ case, congress and the president should enact policies that decrease government spending and decrease taxes.
d. in this​ case, congress and the president should enact policies that decrease government spending and increase taxes.

Answer 1

If congress and the president decide an expansionary fiscal policy is​ necessary, what changes should they make in government spending or​ taxes? In this​ case, congress and the president should enact policies that increase government spending and decrease taxes.

An expansionary policy is a macroeconomic policy that encourages economic growth by expanding the money supply. 

What changes should they make if they decide a contractionary fiscal policy is​ necessary? In this​ case, congress and the president should enact policies that decrease government spending and increase taxes.

A contractionary fiscal policy is made up of the governments budget including spending, taxes, transfer payments or social security.