Question

When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? Choose one or more: A. The government raises tax rates and scales back aid to families with dependent children. B. The government lowers tax rates and expands funding for medical research . C. The government lowers tax rates and issues a partial refund of taxes that have already been paid. D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes.

Answer 1

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Explanation

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