Ask Question
31 December, 17:59

When the government decreases spending or increases taxes to slow economic expansion, the government is conducting: a contractionary fiscal policy. b contractionary monetary policy. c expansionary fiscal policy. d expansionary monetary policy. e neither monetary policy nor fiscal policy.

+5
Answers (1)
  1. 31 December, 21:05
    0
    The correct answer is option a.

    Explanation:

    Fiscal policy can be defined as a tool to make changes in the consumption and aggregate demand through government spending and tax revenue.

    A contractionary policy is used to reduce aggregate demand. A reduction in spending by the government or an increase in taxes is are tools for contractionary fiscal policy.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When the government decreases spending or increases taxes to slow economic expansion, the government is conducting: a contractionary fiscal ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers