Question

I have 2 last questions which are:
Why is the slow growth that can result from a contractionary policy a positive effect?
A.It can increase interest rates.
B.It can decrease available credit.
C.It can increase the money supply.
D.It can decrease inflation.

If expansionary taxation policies are left unchecked, which is the most likely result?
A.reduced profits
B.reduced government spending
C.reduced production
D.reduced disposable income

I picked C for the first question and D for the 2nd question. Does anyone think they are right answers to choose? =)

Answer 1

One form of expansionary policy is fiscal policy, which comes in the form of tax cuts, rebates and increased government spending.
2. is b
1. i think d
am not sure the answers are correct but this is what i will choose in a test.

Answer 2

Alright, thanks so much for all of your help. =)

Answer 3

lol bye