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Alexus [3.1K]
3 years ago
9

Which of the following fiscal policy action would cause the economy to contract?

Social Studies
1 answer:
beks73 [17]3 years ago
3 0
Decreasing the money supply will cause the economy to contract. A fiscal policy is a vehicle that the government uses to adjust its income and expenditure levels. A government generates income by imposing taxes on its citizens. The levels of spending influence the nation's economy.  Government spending affects most economic sectors in a country. <span>If there is lots of money to spend, the country's economy will expand, and vice versa. Prudent government spending is critical to a country's economy</span>


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