An expenditure-reducing policy would consist of a decrease in:
A) The par value of a currency
B) Government expenditures
C) Import duties
D) Business or household taxes

Question

Quizplus · Accepted Answer

An expenditure-reducing policy aims to decrease government expenditures in order to reduce aggregate demand and control inflation. Therefore, the correct choice is B - Government expenditures. The par value of a currency, import duties, or business and household taxes do not necessarily relate to expenditure-reducing policies.

An Expenditure-Reducing Policy Would Consist of a Decrease In