President Johnson's use of a temporary 10% surcharge on income taxes is a classic example of _____ policy.
A) expansionary fiscal
B) contractionary fiscal
C) expansionary monetary
D) contractionary monetary

Question

Quizplus · Accepted Answer

A temporary 10% surcharge on income taxes would reduce disposable income and therefore decrease consumption, which is a contractionary fiscal policy measure.

President Johnson's Use of a Temporary 10% Surcharge on Income