What impact does an expansionary fiscal policy action, such as a tax cut, generally have on consumer and business spending?(1 point)

Question

Responses

spending decreases for both businesses and consumers
spending decreases for both businesses and consumers

spending increases for businesses and decreases for consumers
spending increases for businesses and decreases for consumers

spending decreases for businesses and increases for consumers
spending decreases for businesses and increases for consumers

spending increases for both businesses and consumers
whats the right answer

Answer 1

The correct answer is:
spending increases for both businesses and consumers