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How will a contractionary fiscal policy affect a budget deficit? A.) Debts will decrease B.) No impact C.) Deficit will increase D.) Deficit will decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 16SCQ: What would happen if contractionary fiscal policy were implemented during an economic boom but, due...

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Question

How will a contractionary fiscal policy affect a budget deficit?

A.)	Debts will decrease
B.)	No impact
C.)	Deficit will increase
D.)	Deficit will decrease

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