Question

Contractionary policies are _____. (A)fiscal policies, like higher spending and tax cuts, that encourage economic growth

(B)bills that set money aside for specific spending
(C)fiscal policies, like lower spending and higher taxes, that reduce economic growth
(D)fiscal policies used to increase aggregate demand, thereby increasing the growth of economic output

Answer 1

C

Step-by-step explanation:

The Goverment always uses fiscal policies to lower the spending and higher the taxes. That lowers the economic growth because less spending means less economy. I don't know if I'm right but hopefully I am.