An Intended Goal of Contractionary Fiscal Policy and a Tightening

question 30

Multiple Choice

An intended goal of contractionary fiscal policy and a tightening of monetary policy is

• A) an increase in interest rates.
• B) an increase in the price level.
• C) a decrease in the unemployment rate.
• D) a decrease in the level of aggregate output.

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Definitions:

Loan

Borrowed money that is expected to be paid back in the future under predetermined terms.

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