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18-04-2018
Business

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What type of policy is President Obama referring to when he says, “More people spending more money means more businesses will be able to hire more workers, and the entire economy gets another boost”?

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aldaircano121 aldaircano121

21-04-2018

He is referring to an expansionary policy.

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jepessoa jepessoa

27-01-2020

Answer:

Expansionary fiscal policy

Explanation:

An expansionary fiscal policy happens when the government either decides to lower taxes, increase government spending, or a combination of both. The purpose of this type of policies is to increase households' disposable income. Private consumption is by far the largest component of the GDP, around 70%, so an increase in private consumption should boost economic growth.

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