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alexandr402 [8]
2 years ago
15

Under which type of policy does the government reduce its expenditures and increase tax rates? A. contractionary monetary policy

B. contractionary fiscal policy C. expansionary fiscal policy D. expansionary monetary policy
Business
1 answer:
zloy xaker [14]2 years ago
4 0

Answer:

B. contractionary fiscal policy

Explanation:

The government influences economic direction through fiscal policy measures of increasing or decreasing its expenditure and taxation. Therefore, fiscal policies involve the government's actions of adjusting its spending and taxation to achieve desired economic objectives.

Fiscal policies can either be contractionary or expansionary. Contractionary measures are applied to control rising inflation and moderate the rate of growth. These policies aim at reducing liquidity in the market, thereby achieving stable prices. A reduction in government spending and an increase in taxation reduces liquidity or money circulation.

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Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
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The production range between 1120,000 and 150,000 is called Relevant range

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Explanation:

given data

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solution

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