"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
Colonial rule rested upon violence and coercion in that many colonies were seized with military force; rebellions were regularly suppressed using violence; and forced labor was regularly extracted from the populations of colonies. However, the colonial system also relied on voluntary cooperation.
Answer:
D
Explanation:
The map shows Michigan's forests. The Upper Peninsula, in particular, has an abundance of this natural resource, which helped earlier settlers prosper in the lumber industry. Although many forests are still found there, industrialization has led to a decrease in forests.
In my opinion C. Is the correct answer I could be wrong
