1203
QuizMultiple Choice

Modeling with Rational Functions — Unit test

Question 1203 • Crowley Credit Recovery Algebra II B

Under an expansionary taxation policy, the government tries to stimulate economic growth by

Answer
A
reducing deficits.
B
reducing taxes.
C
reducing demand.
D
reducing spending.

Explanation

An expansionary tax policy aims to boost economic activity by leaving households and businesses with more money to spend and invest. The government does this by reducing taxes, so choice B is correct. Reducing spending or demand would generally slow economic growth, while reducing deficits is not the defining feature of expansionary taxation.

AI-written and checked against the verified answer.

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