Fiscal restraint is defined as
A) Tax hikes or spending cuts intended to reduce aggregate demand.
B) Tax hikes or spending cuts intended to increase aggregate demand.
C) Tax cuts or spending hikes intended to increase aggregate demand.
D) Tax cuts or spending hikes intended to reduce aggregate demanD.Fiscal restraint is tax hikes or spending cuts or transfer payments cuts intended to reduce (shift) aggregate demand.
Correct Answer:
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