Contractionary fiscal policy is used to
A increase the amount of money in the economy
B. decrease the amount of money in the economy
C. decrease the money in the economy, then increase it
D. increase the money in the economy, then decrease it
Please select the best answer from the choices provided
B
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Respuesta :

I think it’s c but I’m not sure or it might be b

Contractionary fiscal policy is used to C. Decrease the money in the economy, then increase it.

What is an example of contractionary fiscal policy?

Whilst the authorities make use of monetary coverage to decrease the quantity of cash available to the populace, that is referred to as contractionary fiscal policy. Examples of this include increasing taxes and reducing authorities' spending.

How does contractionary fiscal policy lessen inflation?

Today, contractionary economic coverage is an extra famous method of controlling inflation. The intention of a contractionary policy is to lessen the money supply inside an economy by using increasing interest costs. 5 This allows gradual monetary increase via making credit extra highly-priced, which reduces client and enterprise spending.

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