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Which of the Following Is Considered Contractionary Fiscal Policy

Question 45

Multiple Choice

Which of the following is considered contractionary fiscal policy?


A) Parliament increases the income tax rate.
B) Parliament increases the Canada Health Transfer.
C) Legislation removes a college tuition deduction from federal income taxes.
D) The Ontario legislature cuts highway spending to balance its budget.
E) The Saskatchewan government increases spending to clean up abandoned oil wells.

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