Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? Choose one or more: BA The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OB. The government lowers tax rates and issues a partial refund of taxes that have already been paid. OC. The government raises tax rates and reduces payments of unemployment benefits. OD. The government lowers tax rates and undertakes a replacement of old bridges and roads. Suppose that, during a recession, the government borrows money to provide free vwireless Internet access in urban areas. Which of the following statements are correct?
Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? Choose one or more: BA The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OB. The government lowers tax rates and issues a partial refund of taxes that have already been paid. OC. The government raises tax rates and reduces payments of unemployment benefits. OD. The government lowers tax rates and undertakes a replacement of old bridges and roads. Suppose that, during a recession, the government borrows money to provide free vwireless Internet access in urban areas. Which of the following statements are correct?
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 5P
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