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Expansionary fiscal policy involves a. increasing taxes or decreasing government purchases. b. increasing the money supply and decreasing interest rates. c. decreasing the money supply and increasing interest rates. d. increasing government purchases or decreasing taxes.

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Lanuel

In Economics, expansionary fiscal policy involves: B. increasing the money supply and decreasing interest rates.

The types of fiscal policy.

Generally, there are two (2) main types of fiscal (monetary) policy that are used across the world and these include the following:

  • Contractionary fiscal policy.
  • Expansionary fiscal policy.

In economics, an expansionary fiscal (monetary) policy is a type of policy that involves an increase in money supply while decreasing interest rates. Thus, it can be used by the government to increase the amount of credits that is available within a particular country's economy and at a specific period of time.

Read more on monetary policy here: https://brainly.com/question/13926715

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