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

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.

If the government engages in expansionary fiscal policy it would __________________, and if it engages in contractionary fiscal policy it would__________________________Group of answer choicesincrease taxes, increase government purchasesdecrease taxes, decrease government purchasesincrease taxes, decrease government purchasesdecrease taxes, increase government purchases

Which of the following is an example of discretionary fiscal policy? Government builds more hospitals as the population ages. An increase in total unemployment benefit payments during a recession due to rising unemployment. An increase in corporate tax collection during an expansion because of more sales. A decrease in total unemployment benefit payments during expansion due to increasing employment. An increase in the interest rate.

Which of the following would come from contractionary monetary policy?Multiple choice question.An decrease in the money supplyAn decrease in the interest ratesAn decrease in government spendingAn decrease in taxes

Define contractionary fiscal policy. When should it be used?