Which are contractionary fiscal policies?  A. Increased taxation and increased government spending 

B. Increased taxation and decreased government spending 

C. Decreased taxation and no change in government spending 

D. No change in taxation and increased government spending

Question

Business

Baker

5 October, 00:00

Which are contractionary fiscal policies?  A. Increased taxation and increased government spending 

B. Increased taxation and decreased government spending 

C. Decreased taxation and no change in government spending 

D. No change in taxation and increased government spending

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Answers (2)

Know the Answer?

Carla Ross · Answer 1

Answer: Increased taxation and increased government spending

Explanation: Fiscal policy refers to the utilization of govt. spending and revenue for operating a country's economy.

A contractionary fiscal policy refers to that fiscal policy which is implemented to fight with inflationary pressures. In case of inflation, govt. aims to decrease the supply of money which can be done by increasing taxes or decreasing govt. spending.

Thus, option B is correct.

Adrienne Cantu · Answer 2

spending.

Explanation:

I just took the test and got a 100.

Which are contractionary fiscal policies? A. Increased taxation and increased government spending B. Increased taxation and decreased government spending C. Decreased taxation and no change in government spending D. No change in taxation and increased government spending

Which are contractionary fiscal policies?  A. Increased taxation and increased government spending 

B. Increased taxation and decreased government spending 

C. Decreased taxation and no change in government spending 

D. No change in taxation and increased government spending