"They reduce disposable income" explains how contractionary policies can hamper economic growth
<h3>Further explanation
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Disposable income is the amount of money that households have,available for spending and saving after income taxes accounted.
Expansionary fiscal policy is an increase in government expenditures, also a decrease in taxes that causes the government's budget deficit to increase or its budget surplus to decrease. In short, expansionary fiscal policy boosts economic growth by lowering interest rates.
Whereas contractionary fiscal policy is defined as a decrease in government expenditures, also an increase in taxes that causes the government's budget deficit to decrease or its budget surplus to increase. Contractionary money policy is used to combat inflation. In short, contractionary fiscal policy hamper economic growth by increasing interest rates.
Contractionary policy increases the cost of borrowing. It can decreases GDP and dampens inflation, but also leads to reduced disposable income. Another negative side effect is it makes an increase in the unemployment rate. Disposable income itself is the amount of money that households have, available for spending and saving after income taxes accounted.
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<h3>Answer details</h3>
Grade: 9
Subject: social studies
Chapter: hamper economic growth
Keywords: hamper economic growth
Answer:
The word wampum means white shell in the Algonquian language family spoken by the Narragansett people of Rhode Island and the Wampanoag people of Massachusetts. Wampum belts are made of white and purple beads, the white beads from the whelk shell, and the purple from the quahog shell.
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This is incorrect. There is no mention of democracy anywhere in the declaration of independence. The ideas of democracy are implied because explanations about life and liberty are democratic as well as the unalienable human rights part. The declaration is more about getting away from the tyrannical king than it is about establishing democratic principles. That's what the constitution was for.
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The Caribbean sea, Hope I helped!!<span />
