Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. a. An increase in the money supply is b. A decrease in taxes is fiscal policy. fiscal policy. not an example of a contractionary an expansionary c. A decrease in the unemployment rate is fiscal policy. d. An increase in tax rates is fiscal policy.
Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. a. An increase in the money supply is b. A decrease in taxes is fiscal policy. fiscal policy. not an example of a contractionary an expansionary c. A decrease in the unemployment rate is fiscal policy. d. An increase in tax rates is fiscal policy.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of
fiscal policy.
a. An increase in the money supply is
b. A decrease in taxes is
fiscal policy.
not an example of
fiscal policy.
a contractionary
an expansionary
d. An increase in tax rates is
c. A decrease in the unemployment rate is
fiscal policy.
fiscal policy.
f. A decrease in the money supply is
e. A decrease in government spending is
fiscal policy.
fiscal policy.
h. An increase in corporate bonds purchased is
g. A decrease in transfer payments is
fiscal policy.
fiscal policy.
i. An increase in government spending is
fiscal policy.
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