Respuesta :
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.
(B) The Federal Reserve Bank lowers the interest rate on loans to corporations.
Fiscal Policy:
- Fiscal policy, in economics and political science, refers to the use of government spending and revenue collection (taxes or tax cuts) to affect a nation's economy.
- The 1930s Great Depression made the prior laissez-faire approach to economic management impractical, which led to the development of the use of government revenue expenditures to affect macroeconomic variables.
- The British economist John Maynard Keynes' Keynesian economics, postulated that changes in the amount of government spending and taxation have an impact on aggregate demand and the level of economic activity, serving as the foundation for fiscal policy.
- A nation's government and central bank primarily employ fiscal and monetary policy to further its economic goals.
Explanation -
- Tax reductions and greater public spending are the two main manifestations of expansionary fiscal policy.
- Both of these measures boost overall demand while reducing budget surpluses or adding to deficits.
- They are often used when there is a recession or when there are signs of one.
Therefore, the correct answer is (B) the Federal Reserve Bank lowers the interest rate on loans to corporations.
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