Question

Taxes are cut by 10% for all income levels. What type of policy is being conducted

Answer 1

When taxes are cut, the type of policy that is being conducted is a expansionary fiscal policy.

What is a expansionary fiscal policy?

Fiscal policies are policies enacted by the government to control the money supply in the economy. Fiscal policy can either be contractionary or expansionary.

Expansionary fiscal policy is when the government increases the supply of money in the economy. This can be done either by reducing the taxes or increasing their level of spending.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing their spending or increasing taxes.

To learn more about fiscal policies, please check: brainly.com/question/25716528

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