Contractionary fiscal policy deals with: Question 32Select one:a.decreasing money supply in the economy and/or increasing interest rates.b.reducing government spending and/or increasing taxes.c.increasing money supply in the economy and/or decreasing interest rates.d.increasing government spending and/or decreasing tax rates.e.increasing government spending and/or decreasing tax rates.

Contractionary monetary policy:Question 33Select one:a.deals with reduced government spending and/or increased taxes.b.results in increased domestic farm prices, export prices, and input prices.c.deals with increasing government spending and/or decreasing tax rates.d.deals with increasing money supply in the economy and/or decreasing interest rates.e.deals with decreasing money supply in the economy and/or increasing interest rates.

When the economy is overheating and experiencing high inflation, contractionary fiscal policy aims to:  A. Increase government spending to boost aggregate demand  B. Reduce taxes to encourage consumer spending  C. Decrease government spending and increase taxes to reduce aggregate demand  D. Lower interest rates to encourage borrowing and investment

Which of the following is an example of a contractionary fiscal policy?Group of answer choicesincreasing government expenditureincreasing taxesincreasing  transfer payments. decreasing taxes

Define contractionary fiscal policy. When should it be used?

Contractionary fiscal policy will cause gross domestic product to _____ and the interest rate to _____.decrease; increasedecrease; decreaseincrease; increaseincrease; decrease