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

Which of the following fiscal policy action would cause the economy to contract?
a. raise taxes
c. decrease the money supply
b. increase government expenditures
d. balance the budget

Respuesta :

Neuron
Neuron Neuron
  • 08-04-2016
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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