In response to an overheating economy, the federal government engages in _____ fiscal policy, which _____ government spending and _____ taxes.Group of answer choicesexpansionary; lowers; raisesexpansionary; raises; lowerscontractionary; raises; lowerscontractionary; lowers; raises

The federal government's purposeful manipulation of taxes and spending in order to "stimulate the economy" or "rein in inflation" is known as Blank______ policy.Multiple choice question.monetarytaxationgovernmentalfiscal

If the government engages in expansionary fiscal policy it would __________________, and if it engages in contractionary fiscal policy it would__________________________Group of answer choicesincrease taxes, increase government purchasesdecrease taxes, decrease government purchasesincrease taxes, decrease government purchasesdecrease taxes, increase government purchases

Select all that applyWhich of the following tools of fiscal policy are used to positively stimulate an economy?Multiple select question.Tax reductionsIncreased government spendingTax increasesDecreased government spending

To positively stimulate an economy using fiscal policy, government spending should Blank______, and taxes should Blank______.Multiple choice question.fall; risefall; fallrise; riserise; fall

If the economy starts out with a balanced federal budget, a subsequent expansionary fiscal policy will create a Blank______.Multiple choice question.budget deficitbudget surpluslower tax ratelower inflation rate