Question

A(n) expansionary, contradictionary or proportional__ policy is employed when the government chooses to run a larger deficit

Answer 1

A lager deficit would be expansionary policy.

Answer 2

The answer is: Expansionary

Expansionary policy refers to a government policy that carried out by decreasing tax rate and increasing the amount of government spending.

When government spending increased, the amount of budget that is used for things such as infrastructures, welfare programs, and foreign affairs would also increase. This usually ending up in a larger deficit.