Expansionary fiscal policy is so named because it:_________.

A. is aimed at achieving greater price stability.
B. is designed to expand real GDP.
C. necessarily expands the size of government.
D. involves an expansion of the nation's money supply.

Respuesta :

Answer:

B. is designed to expand real GDP.

Explanation:

Expansionary fiscal policy is a term used in economics, it refer to the fiscal policies which aim to expand or grow economy. Measure been taken to increase demand of goods and services in the market, through increasing governement spending, decreasing taxes and various other changes in policies, so that economy can grow. Expansionary policy can be either of fiscal policies or Monetary policies.