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WAEC Economics 2021 Question 38

Question 38

Public Finance

When a government cuts down her expenditure to reduce inflation, she has embarked on

  1. A.a restrictive fiscal policy.
  2. B.an expansionary monetary policy.
  3. C.physical policy.
  4. D.implementing budget deficit.
Show the answer and explanation

Answer: A (a restrictive fiscal policy.)

Explanation

Cutting government spending is a contractionary (restrictive) fiscal policy.