{"id":456,"date":"2024-05-12T06:25:19","date_gmt":"2024-05-12T06:25:19","guid":{"rendered":"https:\/\/casestudyhelp.net\/questions\/?p=456"},"modified":"2024-05-12T06:25:19","modified_gmt":"2024-05-12T06:25:19","slug":"which-best-explains-how-contractionary-policies-can-hamper-economic-growth","status":"publish","type":"post","link":"https:\/\/casestudyhelp.net\/questions\/which-best-explains-how-contractionary-policies-can-hamper-economic-growth\/","title":{"rendered":"Which best explains how contractionary policies can hamper economic growth?"},"content":{"rendered":"<h2 style=\"margin: 0in; margin-bottom: .0001pt; background: white;\"><span style=\"color: #000000;\"><strong><span style=\"font-size: 15pt; font-family: Arial, 'sans-serif';\">Which best explains how contractionary policies can hamper economic growth?<\/span><\/strong><\/span><\/h2>\n<ol>\n<li style=\"background: white;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">They increase consumer demand.<\/span><\/li>\n<li style=\"background: white; box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">They can increase inflation.<\/span><\/li>\n<li style=\"background: white; box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">They reduce taxes which raises deficits.<\/span><\/li>\n<li style=\"background: white; box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">They reduce disposable income.<\/span><\/li>\n<\/ol>\n<p style=\"margin: 0in; margin-bottom: .0001pt; background: white; box-sizing: border-box;\"><strong style=\"box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black; font-weight: normal;\"><strong>Answer:-<\/strong> 4<\/span><\/strong><span style=\"font-family: 'Arial','sans-serif'; color: black;\">. They reduce disposable income.<\/span><\/p>\n<p style=\"margin: 0in; margin-bottom: .0001pt; background: white; box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">Contractionary policies can <strong style=\"box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; font-weight: normal;\">lessen disposable income<\/span><\/strong>, which can directly influence the economic growth of the nation. A contractionary policy refers to the<strong style=\"box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; font-weight: normal;\"> monetary measure to reduce government spending or the rate of monetary expansion by a central bank<\/span><\/strong>. It is a macroeconomic tool used to combat rising inflation. Fiscal policy that surges aggregate demand directly through an increase in government spending is characteristically termed expansionary or \u201cloose.\u201d By difference, fiscal policy is frequently considered contractionary or \u201ctight\u201d if it reduces demand via lower spending.<\/span><\/p>\n<p style=\"margin: 0in; margin-bottom: .0001pt; background: white; box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; color: black;\">This example of contractionary fiscal policy could be <strong style=\"box-sizing: border-box;\"><span style=\"font-family: 'Arial','sans-serif'; font-weight: normal;\">when the government resolves to decrease government spending<\/span><\/strong>. Meaning, that government programs, like the forest service, healthcare benefits, or the military, will receive less funding.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><b>Are you seeking for answer<\/b><\/p>\n<p style=\"text-align: center;\">Do you need different question answer<\/p>\n<p style=\"text-align: center;\"><strong>Ask your questions<\/strong><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/casestudyhelp.net\/order-now.php\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1378 size-full\" src=\"https:\/\/casestudyhelp.net\/questions\/wp-content\/uploads\/2024\/05\/Yes-We-Can-help-You.webp\" alt=\"Get Homework Answers\" width=\"800\" height=\"180\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which best explains how contractionary policies can hamper economic growth? They increase consumer demand. 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