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8 June, 14:47

How will a contractionary fiscal policy affect a budget deficit

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  1. 8 June, 16:09
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    A fiscal policy is all about a government's budget and how it has an affect on the economy.

    A contractionary fiscal policy is when spending decreases and taxes increase.

    In the case of a contractionary fiscal policy is should affect a budget by reducing the budget deficit. If there is a contractionary fiscal policy, deficits should decrease and a budget surplus should increase.
  2. 8 June, 18:37
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    the answer is shrink the deficit
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