perlalimas7961 perlalimas7961
  • 26-08-2019
  • Business
contestada

A decrease in taxes is one way to pursue a contractionary fiscal policy because it will make government revenues contract.
(A) True
(B) False

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Nyctalus
Nyctalus Nyctalus
  • 30-08-2019

Answer: False

Explanation: The contractionary fiscal policies are implemented by the govt when the economy is facing inflationary pressures.  In such policies, govt. focus on  decreasing the supply of money in the economy by either increasing taxes, decreasing expenditures or both.

Hence , we can conclude that the given statement is false.

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