"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:
zone of tolerance
Explanation:
Zone of tolerance refers to the extent between desired and adequate service that represents the extent of service performance that customers will tolerate and feel satisfied with. As a result, because John did not expect to arrive so much in advance, he found it acceptable to wait twenty minutes for his room to be cleaned.
Answer:
I believe it is presidential Democracy due to the fact the citizens elect the ruler/president.
Explanation:
Answer:
The French and Indian War (1754–1763) pitted the colonies of British America against those of New France, each side supported by military units from the parent country and by Native American allies.
Part of: Seven Years' War
Explanation:
The Lahore Resolution, also commonly known as the Pakistan Resolution, hopes to create a religious - Islamic state. The goal was to protect Islam from the onslaught of other religions of India. Thus, the answer to the question above is letter B.
