Question

Compared to expansionary monetary policies adopted to counteract a recession, expansionary fiscal policies tend to result in

Answer 1

Answer: Higher interest rate

Explanation:

Expansionary monetary policy is used by the central bank to stimulate the economy in such a way that there'll be a rise in the money supply available in the economy.

The interest rate is also reduced which ultimately leads to a rise in the demand and help improve economic growth. Expansionary fiscal policies on the other hand results in higher interest rate.