Ask Question
18 April, 00:44

A decrease in taxes is one way to pursue a contractionary fiscal policy because it will make government revenues contract.

(A) True

(B) False

+1
Answers (1)
  1. 18 April, 04:21
    0
    Answer: False

    Explanation: The contractionary fiscal policies are implemented by the govt when the economy is facing inflationary pressures. In such policies, govt. focus on decreasing the supply of money in the economy by either increasing taxes, decreasing expenditures or both.

    Hence, we can conclude that the given statement is false.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A decrease in taxes is one way to pursue a contractionary fiscal policy because it will make government revenues contract. (A) True (B) ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers