Save Question 6 1 point d Reducing government spending reduc

Save Question 6 (1 point) d Reducing government spending. reducing transfer payments, or raising taxes describes which policy? a) monetary policy iscal policy O d) ry fiscal policy

Solution

Contractionary fiscal policy as this focuses on reducing government spending, transfer payments and raising taxes. This is the correct answer.

Monetary policy is implemented by the Federal Reserve. Hence this is wrong.

Expansionary fiscal policy will increase the money supply. Wrong.

Supply side will influence the businesses to produce more . Wrong.