Question

Cutting taxes and purchasing government securities are both _____.


monetary policy tools


fiscal policy tools


expansionary tools


contractionary tools
There are no human answers yet.
Answered by GPT-4o mini
Cutting taxes and purchasing government securities are both **expansionary tools**. They are used to stimulate economic activity; cutting taxes increases disposable income for consumers and businesses, while purchasing government securities (a monetary policy action) increases the money supply, which can lower interest rates and encourage borrowing and spending.