why-might-a-government-choose-to-cut-taxes-as-part-of-an-expansionary-fiscal-pol

Question

Why might a government choose to cut taxes as part of an expansionary fiscal policy during a recession?

Accepted Answer

To increase consumer spending and boost aggregate demand.

Answer

To decrease imports and improve the trade balance.

Answer

To decrease consumer spending and reduce inflation.

Answer

To increase savings and reduce the budget deficit.