Question

The _____ fiscal policy combined with easy credit policy will place

ample resources at the disposal of the government to finance public

expenditure projects and it will induce the private investment which will add

more quickly the output without borrowing.​

Answer 1

Answer:

Expansionary fiscal policy

Explanation:

It will increase expenditure and reduce taxes which will create huge outpt in the economy

Answer 2

Answer:

Expansionary Fiscal Policy

Explanation:

In expansionary fiscal policy the government spends more than it takes in through taxes. This may involve a reduction in taxes, an increase in spending, or a mixture of both. In turn, creating a budget or fiscal deficit.

• Expansionary fiscal policy uses lower taxes and/or higher spending to ultimately boost prosperity and economic growth. By reducing taxes, consumers have more money to spend, and stimulate the economy.

• Higher government spending can boost aggregate demand. If it undertakes an investment project, it creates many new jobs. Jobs for people that would otherwise be unemployed. These employees will have more money to spend, thereby stimulating the economy.

Therefore the expansionary fiscal policy combined with easy credit policy will place ample resources at the disposal of the government to finance public expenditure projects and it will induce the private investment which will add more quickly the output without borrowing.​

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