0
A contractionary fiscal policy refers to government measures to reduce its expenditure in order to close the inflationary gap. The government reduces the money in supply by effecting tax increases.
Alanis Price
Add your answer:
Earn +20 pts
Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
Policies reducing levels of economic activity?
contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.
What does Contractionary fiscal policy includes?
Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.
What is it called when a nation doesn't print enough money?
A contractionary monetary policy
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?
A reduction in government spending is consistent with a contractionary fiscal policy.
Policies reducing levels of economic activity?
contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.
What does Contractionary fiscal policy includes?
Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.
What is it called when a nation doesn't print enough money?
A contractionary monetary policy
Definition of monetary policies?
Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .
What type of policy is the government undertaking when they raise taxes and.or reduce federal expenditures?
The government is undertaking a contractionary policy.
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
Which type of policy would the federal reserve use if the economy were entering a contractionary phase of the business cycle?
Loose monetary policy
What is contractionary fisical policy?
A contractionary fiscal policy refers to government measures to reduce its expenditure in order to close the inflationary gap. The government reduces the money in supply by effecting tax increases.
What should the reserve bank do if it wants to pursue a contractionary monetary policy?
raise interest rates & sell securities
Contractionary fiscal policy is shown as a shift?
Contractionary fiscal policy is a decrease in government purchases,increase in net taxes,or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation,fiscal policy used to close and expansionary gap by Jins JAMES e-mail jinsjames1@gmail.com
