ECONOMICS
FISCAL POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which is an example of contractionary fiscal policy?
|
|
The government increasing taxes on all goods and services by 5%
|
|
|
The president issues an executive order
|
|
|
The federal reserve purchases bonds
|
|
|
Government spending increasing
|
Explanation:
Detailed explanation-1: -An example of contractionary fiscal policy could be when the government decides to decrease government spending. Meaning, that government programs, like the forest service, healthcare benefits, or the military, will receive less funding.
Detailed explanation-2: -Answer and Explanation: (c) The Fed raises the discount rate is an example of contractionary monetary policy.
Detailed explanation-3: -An example of contractionary fiscal policy would be to decrease government spending on goods and services.
There is 1 question to complete.