Contractionary fiscal policy will do what to the government budget, assuming that was balanced at the start?
A)A budget deficit
B)A budget surplus
C)An increase in interest rates
D)A decrease in personal taxes

Question

Quizplus · Accepted Answer

Contractionary fiscal policy involves decreasing government spending and/or increasing taxes, which will result in the government budget having a surplus.

Contractionary Fiscal Policy Will Do What to the Government Budget