Which of the following is considered an advantage of expansionary fiscal policy?

Group of answer choices

Lower inflation.

Greater capital inflows.

Lower interest rates.

Smaller trade deficits.

Export-led growth policies are designed to:

Group of answer choices

boost exports, reduce net exports, and increase equilibrium income.

reduce imports and net exports and increase equilibrium income.

increase exports, net exports, and equilibrium income.

reduce imports, increase net exports, and increase equilibrium income.

Exchange rate policy:

Group of answer choices

is a type of fiscal policy.

alters the exchange rate in order to affect a country's consumption.

alters the exchange rate in order to affect a country's trade balance.

alters the exchange rate in order to affect a country's investment.

Economists now generally agree that expectations are:

Group of answer choices

adaptive.

extrapolative.

rational.

perfect.

Automatic stabilizers:

Group of answer choices

are government programs to employ workers during recessions.

create government budget surpluses during economic recessions.

are designed to reduce the price level directly.

counteract both recessions and expansions through changes in spending without government action.