what is one example of a fiscal policy in the united states? the government increases the federal funds…

what is one example of a fiscal policy in the united states? the government increases the federal funds rate. the government purchases government securities. the government raises the reserve requirements for banks. the government reduces the personal income tax rate. when is contractionary policy used? when there is inflation when there is unemployment during a contractionary phase

what is one example of a fiscal policy in the united states? the government increases the federal funds rate. the government purchases government securities. the government raises the reserve requirements for banks. the government reduces the personal income tax rate. when is contractionary policy used? when there is inflation when there is unemployment during a contractionary phase

Answer

Brief Explanations:

Fiscal policy involves government spending and taxation. Reducing personal income - tax rate is a tax - related action, which is a part of fiscal policy. Contractionary policy is used to reduce aggregate demand, and it is typically employed when there is inflation to cool down the economy.

Answer:

The government reduces the personal income tax rate. when there is inflation