When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth. which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? choose one or more:
a. the federal reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes.
b. the government lowers tax rates and issues a partial refund of taxes that have already been paid.
c. the government raises tax rates and reduces payments of unemployment benefits.
d. the government lowers tax rates and begins a military buildup.

The correct answer is option B.

Explanation:

Fiscal policy is concerned with government spending and tax revenue. An expansionary fiscal policy involves either increasing spending or reducing taxes or both.  

An increase in the money supply is an expansionary monetary policy.  

Reducing the tax rates will reduce the cost of production for the sellers. This will increase the production of goods and services.  

At the same time, a partial refund of taxes paid will increase the disposable income of the consumers. This will cause consumption spending and demand to increase.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; (10%) commission;