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4 December, 18:46

If the Parliament passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a (n) : 
A. Political business cycle
B. Expansionary fiscal policy
C. Contractionary fiscal policy
D. Nondiscretionary fiscal policy

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Answers (1)
  1. 4 December, 22:13
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    The correct answer is option C.

    Explanation:

    Fiscal policy is a tool to stabilize fluctuations in the economy by making adjustments in government spending and tax rates. Fiscal policies can be classified into two types; contractionary and expansionary.

    Contractionary fiscal policy includes increasing taxes and reducing government spending to reduce inflation. Expansionary fiscal policy involves reducing taxes and increasing government spending to boost the economy.
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Home » Business » If the Parliament passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a (n) : 
A. Political business cycle
B. Expansionary fiscal policy
C. Contractionary fiscal policy
D.
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