question archive Congress and the president would conduct contractionary fiscal policy in order to: a
Subject:EconomicsPrice:2.88 Bought3
Congress and the president would conduct contractionary fiscal policy in order to:
a. Try to control inflation,
b. Prevent the economy from falling into a recession,
c. Control the money supply,
d. Raise the budget deficit,
e. Try to stimulate the economy toward expansion.
Contractionary fiscal policy is a remedy during the expansionary phase or to control inflation in the economy. Inflation is the result of increased prices in the economy due to increased demand. A government reduces spending or increases taxes to discourage people from spending more. As a result, demand for commodities will decrease, which reduces the price level in the economy.