An example of an expansionary fiscal policy action is
...An example of an expansionary fiscal policy action is
Decrease in the corporate profit tax rates
Decrease in welfare payments
Purchase of government securities
Decrease in the bank rate
Correct answer is A
Expansionary fiscal policy is when the government expands the money supply in the economy using budgetary tools to either increase spending or cut taxes—both of which provide consumers and businesses with more money to spend. Cutting down on tax rates would mean higher profits for businesses. This is done to increase the supply of money in the economy.
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