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