a contractionary policy would not involve which of the following? * 1 point an attempt to reduce the deficit…

a contractionary policy would not involve which of the following? * 1 point an attempt to reduce the deficit cuts in government spending a tax decrease a tax increase this is a required question

a contractionary policy would not involve which of the following? * 1 point an attempt to reduce the deficit cuts in government spending a tax decrease a tax increase this is a required question

Answer

Brief Explanations:

Contractionary policies aim to slow economic growth, often by reducing aggregate demand. Reducing the deficit, cutting government spending, and increasing taxes all decrease the money - supply or spending in the economy. A tax decrease would increase disposable income and stimulate spending, which is an expansionary, not contractionary, measure.

Answer:

C. a tax decrease