Which of these describes a contractionary fiscal policy position?

A. The government will maintain spending and taxes at their current rate.

B. The government will spend less money than it earns by cutting its spending or by raising taxes.

C. The government will spend more money than it earns from tax revenue.

Question

9 July, 16:51

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Answers (1)

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Irene Anthony · Answer 1

The correct answer is B. The government spend less money than it earns by cutting its spending or by raising taxes