Question

The government is pursuing an expansionary fiscal policy if it

Answer 1

Answer:

If it start spending more or taxing less.

Explanation:

Expansionary fiscal policy is, simply put, when a government starts spending more, or taxing less. In the U.S. today, expansionary fiscal policy is typically associated with an expanding deficit and national debt, but this policy doesn't necessarily equate to these two hot political topics. A government can have a budget surplus and still use this policy. The key is that it just spends more or taxes less, regardless of its budgetary surplus or deficit.