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4 May, 06:45

What is the goal of contractionary fiscal policy?

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  1. 4 May, 06:56
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    The goal of the contractionary fiscal policy is a type of fiscal policy that increases taxes and lowers government spending. It also possible that it can be both which aims to beat the inflation pressure. Due to the increase of taxes, households may have the tendency not to spend that much. Lower disposal means lowers consumption.
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