Which best describes how expansionary policies can facilitate economic growth?
a. They prompt decreased demand.
b. They inspire consumer confidence.
c. They increase disposable income.
d. They help reduce consumer debt.
Answer:- C. They increase disposable income.
Explanation:
Expansionary fiscal policies refer to the government’s events for an economy to stop changes in their economic system. Though, the policy works by increasing the source of money to decline the effects of quick inflation, accompanied by robust monetary evolution. This would increase the quantity of money that they could use for consumption (disposable income) which would hearten the development of numerous commercial establishments.
Expansionary fiscal policy comprises tax cuts, transmission payments, refunds and increased government spending on plans such as infrastructure improvements. For instance, this can increase discretionary government spending, infusing the economy with more money through government contracts.
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