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Q: What are its two main contractionary policies?
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Contractionary policies are?

fiscal policies, like lower spending and higher taxes, that reduce economic growth


Contractionary policies are _____.?

fiscal policies, like lower spending and higher taxes, that reduce economic growth


Policies reducing levels of economic activity?

contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.


What does Contractionary fiscal policy includes?

Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.


Which type of policy is controlled by the Board of Governors of the Federal Reserve?

Well, if by "the federal reserve", you mean the federal reserve bank, then there are two types of policies. These are expansionary and contractionary monetary policies. In times of recession, The FED uses expansionary policies such as increasing the money supply by buying bonds, lowering the discount rate, and lowering reserve requirements.In times of over expansion, The FED uses contractionary policies such as decreasing the money supply by selling bonds, raising the discount rate, and raising reserve requirements.


What is the definition of contractionary gap?

A contractionary gap occurs when an economy's actual output is less than its potential output. This leads to high unemployment and underutilization of resources. Policymakers may implement contractionary monetary or fiscal policies to close this gap and bring the economy back to full employment.


Which action is most likely to result in a decrease in money supply?

A contractionary monetary policy or a contractionary fiscal policy.


From 1930 to 1940 the early policies of Keynes developed The main focus of these policies was oriented toward two specific problems What were these problems?

Depression and Unemployment.


What are the two main categories of policies in the Group Policy console?

User configuration, and computer configuration.


From 1930 to 1940 early policies of Keynes developed The main focus of these policies was oriented toward two specific problems What were these problems?

Depression and Unemployment.


Definition of monetary policies?

Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .


The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?

A reduction in government spending is consistent with a contractionary fiscal policy.