Why is government action that increases the deficit an expansionary fiscal policy? government expansionary fiscal policy includes

a. decreasing inventories, which increases the deficit.
b. increasing taxes, which increases the deficit.
c. increasing the interest rate, which increases the deficit.
d. increasing government spending, which increases the deficit.

The answers are:

1) Expansionary fiscal policy: government policy that seeks to increase aggregate demand through higher government spending and/or lower taxes.

The government's deficit is increased by:

So any possible action that increases the deficit, will be considered an expansionary fiscal policy.

2) Government expansionary fiscal policy includes: D) increasing government spending, which increases the deficit.

idk

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idk

im thinking a but im not 100% sure

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