<u>The correct order for the steps that show how contractionary fiscal policies work would be the following</u>:
-Government increases tax rate
-Inflationary pressure decreases
-Consumers have less money to spend
-Producers manufacture fewer goods
Contractionary monetary policy is often applied <u>when the economy is suffering from inflationary pressure</u>. The central bank (U.S. Federal Reserve) will <u>slow down the monetary supply</u>. In turn, this raises the cost of borrowed money, which <u>decreases Gross Domestic Product and inflation</u>. Some negative side effects could be a higher unemployment rate.
Hope this helps!
Answer: A. the insufficient justification effect.
Explanation:
Most historians agree that without outside help the colonists likely would not have won the war. The assistance by France especially was crucial in putting an end to the war. Interesting Facts about American Allies in the Revolutionary War Benjamin Franklin served as the ambassador to France during the war.
