Question

Which of the following is an example of the use of fiscal policy by the U.S. government? A. Congress makes it illegal for the police union to go on strike. B. The Federal Reserve Bank lowers the interest rate on loans to corporations. C. The Department of Transportation increases spending on highway repairs. D. The Supreme Court rules that unions have the right to collective bargaining.
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Answer 1

Answer:

The Department of Transportation increases spending on highway repairs.

ape x

Answer 2

Answer:

B

Explanation:

The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies increase aggregate demand while contributing to deficits or drawing down of budget surpluses. They are typically employed during recessions or amid fears of one.