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Increasing government spending

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Q: Which action has an expansionary effect on the economy?
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What is expansionary mode?

Expansionary mode is the growth of the economy during a recession


What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?

high inflation


Which one of these does not describe a strong economy?

The government will assume an expansionary fiscal policy position.


Which scenario indicates that an expansionary monetary policy is needed?

The economy has been growing rapidly.


How does increasing money supply affect expansionary monetary policy?

Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.


Which type of monetary policies would the Federal Reserve most likely use when the economy is struggling?

Expansionary policies


Expansionary fiscal policy includes?

Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.


What economic period does it growth and decline?

During an expansionary period/phase, an economy grows. In a contractionary period/phase, an economy declines/retracts until it begins to grow again.


What is the effect continuous industrial have on a country?

When there is continuous industrial action sometimes the country can go on a standstill, in which the economy doesn't grow for that period


Why does the government sometimes use an expansionary fiscal policy?

to encourage growth and try to stop or prevent a recession


What is non monetised deficit?

Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant


How can a government try to minimize business cycles?

Governments try to control this cycle to prevent crashes from happening in the economy. They can do this by promoting the growth of businesses during the expansionary phase of the cycle.