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layzi2ercykristej0as
layzi2ercykristej0as layzi2ercykristej0as
  • 03-04-2016
  • Social Studies
Answered

Which of the following fiscal policy action would cause the economy to contract?

Araise taxes
Cdecrease the money supply
Bincrease government expenditures
Dbalance the budget

Verified Answer :

Neuron
Neuron Neuron
  • 07-04-2016

The fiscal policiy which would cause a contraction of the economy would be the decreasing of money supply - c 

When money supply is decreased, this means that a country has less money which is flowing through te country and this in effect means that there is less people who're willing to partake in economy.

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