Considered an active fiscal policy

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Reference no: EM131174304

Which of the following would be considered an active fiscal policy?

a) Tax incentives are offered to encourage the purchase of fuel efficient cars.

b) Spending on the war in Afganistan is increased to promote homeland security.

c) The Fed increases the money supply.

d) A tax cut is designed to stimulate spending passed during a recession.

Reference no: EM131174304

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