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Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
What is contractionary 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.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
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.
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.
Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
What is contractionary 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.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
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.
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
How will a contractionary fiscal policy affect a budget deficit?
A contractionary fiscal policy, which involves reducing government spending or increasing taxes, typically aims to decrease the budget deficit. By lowering expenditures or raising revenues, the government can reduce its reliance on borrowing, leading to a smaller deficit. However, if the policy significantly slows economic growth, it could also reduce tax revenues, potentially offsetting some of the deficit reduction. Overall, if implemented effectively, contractionary fiscal policy should help improve the budget deficit situation.
What tools would be used to implement contractionary monetary and fiscal policy?
Contractionary monetary policy is typically implemented using tools such as raising interest rates, increasing reserve requirements for banks, and selling government securities in open market operations to reduce money supply. On the fiscal side, contractionary fiscal policy involves reducing government spending or increasing taxes to decrease overall demand in the economy. Both approaches aim to curb inflation and stabilize economic growth by reducing excess liquidity and consumer spending.
What describes a contractionary fiscal policy position?
The government spends less money than it earns by cutting its spending or by raising taxes. A+
Which of these does not describe a weak economy?
The government will assume a contractionary fiscal policy position.
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.
