When the government decreases spending or increases taxes to slow economic expansion,the government is conducting ________ policy.
A) expansionary monetary
B) expansionary fiscal
C) contractionary monetary
D) contractionary fiscal
E) neither monetary policy nor fiscal

Question

Quizplus · Accepted Answer

When the government decreases spending or increases taxes to slow economic expansion, it is conducting contractionary fiscal policy.

When the Government Decreases Spending or Increases Taxes to Slow