2022 budget: China increases public spending to stabilize economy China plans to expand public expenditure budget by 8.4 percent in 2022 compared with last year, totaling 26.71 trillion yuan ($4.23 trillion), according to a draft 2022 budget report released on Saturday. The country is set to implement a proactive fiscal policy that emphasizes precision and sustainability in enhancing its effectiveness, the report said. The budget plan was announced against the backdrop of major domestic headwinds including shrinking demand, supply shocks and weakening expectations, while the COVID-19 pandemic and high commodity prices have added to the pressure.

To support regional economies, the transfer payment from the central to local governments will jump 18 percent, reaching almost 9.8 trillion yuan. Source: https://news.cgtn.com/news/2022-03-05/2022-budget-China-increases-public-spending-to-stabilize-economy-189rUKL8P3a/index.html

Which of the following policy descriptions best explains the decision by the Chinese government? a) Expansionary fiscal policy b) Contractionary fiscal policy c) Expansionary monetary policy d) Contractionary monetary policy