Which of the following is an example of a fiscal restraint policy?

Question

Quizplus · Accepted Answer

Fiscal restraint policies are measures taken by the government to decrease its budget deficit or debt. Increasing taxes and cutting transfer payments are both examples of fiscal restraint policies, as they reduce government spending and increase revenue. Increasing government expenditure, on the other hand, is an example of a fiscal stimulus policy, as it injects more money into the economy and can lead to economic growth. Therefore, the correct answer is E, which includes the two options that are examples of fiscal restraint policies.

Which of the Following Is an Example of a Fiscal