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Question

If the government is trying to promote stability and economic growth through tax cuts, what type of fiscal policy being used?



Correct Answer
A

Expansionary Fiscal Policy

Your Answer
B

Restrictive Fiscal Policy

Your Answer
C

Easy Money Policy

Your Answer
D

Tight Money Policy


Solution

The correct option is A

Expansionary Fiscal Policy


Tax cut is an example of expansionary fiscal policy.

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