Which Are Contractionary Fiscal Policies

question 7

Multiple Choice

Which are contractionary fiscal policies?

• A)increased taxation and increased government spending
• B)increased taxation and decreased government spending
• C)decreased taxation and no change in government spending
• D)no change in taxation and increased government spending

Understand the role of budgets in planning and controlling organizational finances.

Grasp the critical steps in the accounting cycle and their sequential order.

Understanding the composition and purpose of a balance sheet.

Understanding the different categories of cash flow and their calculation.

---

Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which are obligated to pay back with interest.

Investment Incentives

Benefits, typically in the form of tax reductions or credits, offered to encourage investment by individuals and corporations.

Loanable Funds

A term referring to all the money available for borrowing in the financial markets, from various sources including savings and investments.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically over a one-year period.