In order to implement expansionary policy, the goverment and Central Bank must government spending, taxes, and interest rates. A increase, increase increase B. increase decrease, decrease C. decrease increase increase D. decrease decrease, decrease

B. increase decrease, decrease

Explanation:

Expansionary policies are measures aimed at stimulating economic growth. They are applied during times of recession and depression. Expansionary policies work by increasing the money supply in the economy. These policies increase liquidity in the market, thereby increasing the demand for goods and services.

Increasing government spending is an expansionary fiscal policy. Increased spending means releasing more money into the economy.   Decreasing taxes imply individuals and business will pay lower taxes than before. The results in an increase in disposable income and an increase in demand.

The interest rate represents the cost of borrowing money. When the interest rates are high, individuals and businesses find borrowing uneconomical. When the interests are decreased, the cost of borrowing reduces, which encourages increased borrowing for consumption and investments.

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answer; someone must cover the cost associated with the provision of scarce goods in both sectors;