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mars1129 [50]
3 years ago
6

How will a contractionary fiscal policy affect a budget deficit

Social Studies
2 answers:
dimulka [17.4K]3 years ago
7 0

Answer:

the answer is shrink the deficit

Explanation:

grandymaker [24]3 years ago
3 0

A fiscal policy is all about a government’s budget and how it has an affect on the economy.

A contractionary fiscal policy is when spending decreases and taxes increase.

In the case of a contractionary fiscal policy is should affect a budget by reducing the budget deficit. If there is a contractionary fiscal policy, deficits should decrease and a budget surplus should increase.

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