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Basic Question 2 of 12

A cut in defense spending is an example of a(n) ______.

A. expansionary monetary policy
B. expansionary fiscal policy
C. contractionary fiscal policy

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Learning Outcome Statements

describe tools of fiscal policy, including their advantages and disadvantages;

explain the implementation of fiscal policy and difficulties of implementation;

determine whether a fiscal policy is expansionary or contractionary;

CFA® 2024 Level I Curriculum, Volume 2, Module 12.