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.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerall of the above;