An Example of Contractionary Fiscal Policy Is

question 37

Multiple Choice

An example of contractionary fiscal policy is

• A) an increase in government expenditures,or an increase in taxes,or both.
• B) a decrease in government expenditures,or a decrease in taxes,or both.
• C) an increase in government expenditures,or a decrease in taxes,or both.
• D) a decrease in government expenditures,or an increase in taxes,or both.
• E) increasing government expenditures while holding taxes constant.

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Definitions:

Revenue Recognition

An accounting principle that determines the specific conditions under which income becomes realized or realizable, and thus recognized as revenue.

Property Taxes

Taxes levied by local governments based on the assessed value of real property.

Revenue Recognition

The accounting principle that revenue should be recorded when it is earned, regardless of when the payment is received.