Which of the following is a tool of expansionary fiscal policy?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is a tool of expansionary fiscal policy?
(A) A. Increasing taxes
(B) B. Cutting government spending
(C) C. Reducing subsidies on essential goods
(D) D. Increasing government spending to stimulate demand

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Increasing government spending to stimulate demand

Topics: Public Finance

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