asked 141k views
4 votes
When does the government assume an expansionary fiscal policy position?

asked
User Hemdi
by
8.6k points

1 Answer

2 votes
Expansionary fiscal policy is defined as increase in the expenses of the government and decrease in taxes. A government assumes an expansionary fiscal position WHEN IT IS WEAK. An expansionary fiscal policy helps the government to come out of the recession phase. Keynes and his followers were big supporter of expansionary fiscal policy in helping rescuing during recession phase.
answered
User Armatorix
by
8.4k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories