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When we speak of expansionary fiscal policy, policymakers __________ government spending, or __________ taxes, or both?

User Kerith
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The answers to the blanks provided above are INCREASE, and DECREASE, respectively. When we say expansionary fiscal policy, this is when the government increases the money supply for the purpose of economic growth and to avoid any inflationary price increases. Therefore, what is done is that, the government spending is increased in order to create economic growth and decrease the taxes, or both.
User Serafeim
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