Answer: decrease in government purchases and an increase in tax.
Explanation:
Fiscal policy is the use of government expenditure and taxation to control economic activities. Contractionary fiscal policy is a type of fiscal policy that has to do with the increase in taxes and decrease in government expenditures Contractionary fiscal policy is used when there is too much money in circulation or to fight inflationary pressures.
Because of the increase in taxes, households and firms will have less money to spend. Lower disposal income will help in reducing consumption.
Also, government reduction of expenditure is also a good Contractionary fiscal policy method. Decrease in spending by the government will reduce money supply in the economy and consumption will be reduced too.
Answer:
They would increase the quantity supplied of loans and increase the interest rate
Explanation:
Monetary policy
This is simply refered to as alterations or changes in the interest rate to alter or influence the level of aggregate demand in an economy that is the demand side policy.
The central banks are known to be regulators of commercial banks and bankers to governments. The interest rate is the price of money. They manages interest rates to influence the money supply. They set the base rate of interest and the base rate influences all other interest rates that commercial banks use (i.e. savings rate, mortgage rate, car loan rate
Answer:
Supply of and demand for money.
Explanation:
The equilibrium interest rate is determined by the demand and supply of the money. The interest rate is represented by the verticle axis of the graph and supply and demand for money is represented by the horizontal axis. Thus, the point of intersection between supply curve and demand curve determines the equilibrium interest rate.
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the least accurate of all of these statements would be " Because of technology, the number of persuasive messages has decreased." This is completely false because technology has not decreased the flow of information but instead drastically increased in, and this includes persuasive messages as well.
Beliefs because that's what they think is correct in other words believe what is correct.
