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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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

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® 2025 Level I Curriculum, Volume 1, Module 3.