"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
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Answer:master cylinder one way cup is leaking worn brake linings
Explanation:
When master cylinder one way cup is leaking worn brake linings in an airplane equipped with master cylinders and single-disk brakes then the brakes would be hard and effective.
Answer:
The primary factor influencing demand for housing is the price of housing. By the law of demand, as price decreases, the quantity of housing demanded increases. The demand for housing also depends on the wealth of households, their current income, and interest rates.
Answer:
Correct option is (D)
Explanation:
Qualitative research is carried out by the researcher to understand a phenomena without using quantitative techniques. The variables are not quantified.Though, it can act as a boundary study from quantitative research.
A qualitative research requires the research instruments to be objective and objectivity of researcher. It measures social and emotional responses in the form of people's experiences, opinions and beliefs. It however, does not require use of mathematical or statistical techniques to make inferences or conclusions.
