Expansionary fiscal policy is so named because it:
Select one:
a. Involves an expansion of the nation's money supply
b. Necessarily expands the size of government
c. Is aimed at achieving greater price stability
d. Is designed to expand real GDP
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
