Which of the following is an example of a fiscal restraint policy?
A)increasing government expenditure
B)increasing taxes
C)cutting transfer payments
D)both A and B
E)both B and C

Question

Quizplus · Accepted Answer

Fiscal restraint policies involve decreases in government spending and/or increases in taxes to reduce inflationary pressures or budget deficits. Cutting transfer payments is an example of decreased government spending, while increasing taxes is an example of increased revenue. Therefore, the correct answer is E: both B and C.

Which of the Following Is an Example of a Fiscal