Which of the following would be an example of contractionary fiscal policy?
A. Congress enacts economic sanctions on North Korea.
B. Congress increases the corporate tax rate by 3 percent.
C. Congress decreases the rate for the top income tax bracket by 5 percent.
D. Congress increases infrastructure spending by 2 percent.
Answer: B
Economics
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With positive externalities, _____
a. the market equilibrium occurs at a lesser quantity than the socially optimal output b. the market equilibrium occurs at a greater quantity than the socially optimal output c. the social benefit curve lies below the private benefit curve d. there is no deadweight loss
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Refer to the above figure. Autonomous consumption equals
A. $5000. B. -$5000. C. 0. D. $25,000.
Economics