Which best explains how contractionary policies can hamper economic growth

Asked by admin @ 27/09/2021 in Social Studies viewed by 277 People

Which best explains how contractionary policies can hamper economic growth? They increase demand. They help increase consumer debt. They reduce consumer confidence. They reduce disposable income.

Answered by admin @ 27/09/2021

Answer: They reduce disposable income.

Contractionary money policy is used to combat inflation. The policy involves decreasing the money supply through increase in the discount rate or sale of government bonds or increase in the reserve ratio.

Contractionary policy increases the cost of borrowing. This decreases GDP and dampens inflation, but it also leads to reduced disposable income. Another negative side effect is an increase in the unemployment rate.

Which best describes how expansionary policies can facilitate economic growth

Asked by admin @ 27/09/2021 in Business viewed by 476 persons

Which best describes how expansionary policies can facilitate economic growth? They prompt decreased demand. They inspire consumer confidence. They increase disposable income. They help reduce consumer debt.

Why is sustainable development essential for economic growth explain

Asked by admin @ 23/08/2021 in Social Sciences viewed by 302 persons

Why is sustainable development essential for economic growth? Give two reasons

Which of the following explains the term economic growth

Asked by admin @ 12/08/2021 in Geography viewed by 299 persons

Which of the following explains the term economic growth? A) Increase in per capita production B) Increase in per capita real income C) both A and B

Which statement best summarizes how president reagan’s economic policies affected the us economy?

Asked by maham237 @ 30/11/2020 in History viewed by 379 persons

There was a decline in unemployment, but people made less money and paid higher taxes. There was a significant rise in prosperity triggered by a reduction in federal spending and …

Which best describes the difference between economic and social policies

Asked by admin @ 27/09/2021 in History viewed by 324 persons

Which best describes the difference between economic and social policies?Economic policies control the supply of money, while social policies manage spending.Economic policies address educational issues, while social policies regulate businesses.Economic …

Under an expansionary taxation policy, the government tries to stimulate economic growth by

Asked by wiki @ 09/11/2020 in History viewed by 388 persons

a.increasing taxes. b.reducing taxes. c.increasing spending. d.reducing spending.

What theory best explains the origin of our solar system

Asked by admin @ 26/11/2021 in Social Studies viewed by 324 persons

The nebular theory is the most widely accepted view of the origin of our solar system. Which of the following is a short description of the nebular theory? A) Thermonuclear …

Which best explains why water has a high specific heat

Asked by admin @ 09/10/2021 in Biology viewed by 339 persons

Which best explains why water has a high specific heat? O Hydrogen bonds decrease the amount of energy that is required for the temperature to change. O Hydrogen bonds increase …