What type of policy is President Obama referring to when he says, “More people spending more money means more businesses will be

Question

Margaret [11]

3 years ago

8

What type of policy is President Obama referring to when he says, “More people spending more money means more businesses will be

able to hire more workers, and the entire economy gets another boost”?

Business

2 answers:

Vera_Pavlovna [14] · Answer 1 · 2022-03-09T02:16:22+03:00

Vera_Pavlovna [14]3 years ago

8 0

He is referring to an expansionary policy.

Nat2105 [25] · Answer 2 · 2022-03-09T04:44:53+03:00

Answer:

Expansionary fiscal policy

Explanation:

An expansionary fiscal policy happens when the government either decides to lower taxes, increase government spending, or a combination of both. The purpose of this type of policies is to increase households' disposable income. Private consumption is by far the largest component of the GDP, around 70%, so an increase in private consumption should boost economic growth.