Contractionary fiscal policy occurs when:
A) the government decreases spending or increases taxes to slow economic expansion.
B) the government decreases spending or decreases taxes to slow economic expansion.
C) the government increases spending or increases taxes to slow economic expansion.
D) the government increases spending or decreases taxes to stimulate the economy toward expansion.
E) the Federal Reserve decreases money supply to stimulate the economy toward expansion.
Correct Answer:
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