Question

Select the policies that are intended to encourage economic growth. _increasing government spending. _raising taxes. _reducing interest rates. _increasing the money supply.

Answer 1

increacing gov spending and raising taxes is the answer

Answer 2

To stimulate the economy, the government can use fiscal and monetary policies in an expansionary way.

Expansionary fiscal policy consists of increasing government spending, which drives the productive chain of each sector as the government contributes resources and warms the economy.

On the monetary policy side, the increase in the money supply is an expansionary monetary policy, therefore, it serves to stimulate the economy, as long as inflation is under control.

Therefore, items 1 and 4 are correct.