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Basic Question 1 of 8

Which of the following is an example of a contractionary fiscal policy?

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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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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® 2024 Level I Curriculum, Volume 1, Module 3.