Concept:Expansionary fiscal policy is a government measure to increase aggregate demand by putting more money in the hands of people and businesses.
Explanation:To expand the economy, the government can reduce taxes.
When tax rates are lowered, people keep a larger part of their income.
This increases disposable income, leading to higher consumption and investment.
Higher consumer spending boosts aggregate demand and economic growth.
The other options involve restricting money supply or increasing costs, which are contractionary or monetary measures, not expansionary fiscal policy.
Answer:D. decreasing tax rates.