What would be a characteristic of a expansionary fiscal policy?

An expansionary fiscal policy is aimed at stimulating economic growth, particularly during periods of recession or economic downturn. One of the primary tools of this policy is decreasing taxes. When the government reduces taxes, consumers and businesses have more disposable income, which can lead to increased consumption and investment. The boost in demand encourages production, potentially leading to job creation and overall economic growth.

This characteristic aligns closely with the goals of expansionary fiscal policy, as it directly impacts the economy by increasing aggregate demand. Reducing taxes stimulates spending without immediately increasing government expenditures, which is often a fundamental intent behind such a policy.

The other options present characteristics that do not align with the goals of expansionary fiscal policy, as increasing interest rates and decreasing government expenditure typically aim to slow down economic activity, while increasing government savings would not directly contribute to stimulating the economy. Thus, decreasing taxes serves as a clear, effective mechanism associated with expansionary fiscal policy.