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Social Studies

Answered

Which of the following would be an example of expansionary fiscal policy?

a reduction in interest rates

a reduction in government subsidies to farmers

a reduction in income taxes on low-income earners

a reduction in unemployment benefits

Answer :

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A reduction in income taxes on low-income earners

Production and income taxes increases the level of disposable income, and this increases advocate demand. A cutting income taxes an example of expansionary physical policy.

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