Expansionary fiscal policy involves:

CA Foundation · Business Economics · MTP · September 2026
Expansionary fiscal policy involves:
(A) A. higher taxes and lower spending
(B) B. lower taxes and higher spending
(C) C. higher interest rates
(D) D. lower imports

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. lower taxes and higher spending

Topics: Public Finance

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