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Basic Question 1 of 8
Which of the following is an example of a contractionary fiscal policy?
II. Increased taxes
III. Decreased taxes
IV. Increased spending on highways
V. A decrease in the money supply
I. Increased defense spending
II. Increased taxes
III. Decreased taxes
IV. Increased spending on highways
V. A decrease in the money supply
User Contributed Comments 6
| User | Comment |
|---|---|
| Khadria | "V. a decrease in the money supply" is a contractionary "monetary" policy |
| hoyleng | V is a monetary policy, not a fiscal policy. |
| gill15 | V is a monetary policy anybody else...make it shorter |
| ashish100 | V -> Monetary |
| khalifa92 | V Monet. |
| Mheaton37 | V = Mon. |
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Learning Outcome Statements
describe roles and objectives of fiscal policy as well as arguments as to whether the size of a national debt relative to GDP matters
CFA® 2026 Level I Curriculum, Volume 1, Module 3.