Question

Which of the following is a contractionary fiscal policy?

a. The federal government builds a new medical research center at a prestigious state university.
b. The sales tax on clothing is lifted for one week before the school year begins.
c. The federal government sends taxpayers up to $300 each in the form of an income tax rebate.
d. The President and Congress pass a new 2-cent-per-gallon gasoline tax.

Answer 1

a. The federal government builds a new medical research center at a prestigious state university.

Answer 2

The right answer for the question that is being asked and shown above is that: "a. The federal government builds a new medical research center at a prestigious state university." a contractionary fiscal policy is that a. The federal government builds a new medical research center at a prestigious state university.