Answer:
a) reducing military spending
Explanation:
Contractionary fiscal policy is when the government reduces spending or increases taxes to reduce money supply, remedy a budget deficit or increase a surplus.
Contractionary fiscal policy can be used to combat inflation.
Reducing the military spending is a contractionary fiscal policy because it reduces money supply.
Building a new interstate highway, increasing federal spending to renovate college campuses and sending taxpayers a $600 rebate are expansionary fiscal policy because it increases government spending and the money supply.
