Answer to Question #124404 in Macroeconomics for Majestic Famous

Question

Which of the following is an example of fiscal tightening? # randomize

A. Business spending more because they are more optimistic about the economy

B. Consumers spending more because they expect high income in future

C. Foreigners buying more local goods because of higher income

D. Government reducing the size of its deficit

E. Central bank raising interest rates to fight inflation

Answer 1

D) The government reducing the size of its deficits