Which of the Following Is Considered Contractionary Fiscal Policy

question 279

Multiple Choice

Which of the following is considered contractionary fiscal policy?

• A)Congress increases the income tax rate.
• B)Congress increases defense spending.
• C)Legislation removes a college tuition deduction from federal income taxes.
• D)The New Jersey legislature cuts highway spending to balance its budget.

---

Definitions:

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

ROE

Return on Equity, a measure of a corporation's profitability that shows how much profit a company generates with the money shareholders have invested.

Business Software

Computer software designed to help individuals and companies conduct their business activities more efficiently.

Integrated Oil and Gas

Integrated oil and gas companies are those involved in the entire value chain of the oil and gas industry, including exploration, extraction, refining, and distribution.