Which Best Explains How Contractionary Policies Can Hamper Economic Growth in How To
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Which Best Explains How Contractionary Policies Can Hamper Economic Growth. They reduce disposable income.contractionary money policy is used to combat inflation. In short, contractionary fiscal policy hamper economic growth by increasing interest rates.
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They reduce taxes which raises deficits. Keep up the good work! Overheating of the economy is also a negative phenomenon, as it leads to rapid inflation.
Which best explains how contractionary policies can hamper
(i) aggregate demand increases (ii) consumer debt. (i) aggregate demand increases (ii) consumer debt increases (iii) consumer confidence decreases (iv) disposable income decreases In this case, contractionary policy is implemented with reducing government spending and taxes increasing. Which best explains how contractionary policies can hamper economic growth?
