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Expansionary fiscal policy is so named because it:

Select one:

AInvolves an expansion of the nation's money supply
BNecessarily expands the size of government
CIs aimed at achieving greater price stability
DIs designed to expand real GDP

Verified Answer :

Expansionary fiscal policy is the policy that aims at expanding the money supply into the economy - by tax cuts and increased government spending. The correct answer is this one: a. Involves an expansion of the nation's money supply

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