In order to implement expansionary policy, the government and Central Bank must ______ government spending, ______ taxes, and ______ interest rates.
In order to implement expansionary policy, the government and Central Bank must ______ government spending, ______ taxes, and ______ interest rates.
Share
In order to implement expansionary policy, the government and Central Bank must increase government spending, decrease taxes, and lower interest rates.
Explanation: Expansionary policy aims to stimulate economic growth. Increasing government spending puts more money into the economy, decreasing taxes leaves consumers with more disposable income, and lowering interest rates makes borrowing cheaper, encouraging both consumer spending and business investment. Together, these actions help boost overall economic activity.