WAEC Economics 2021 Objective — Question 38
Question 38 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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38. When a government cuts down her expenditure to reduce inflation, she has embarked on
- A. a restrictive fiscal policy.Correct
- B. an expansionary monetary policy.
- C. physical policy.
- D. implementing budget deficit.
Explanation
Cutting government spending to fight inflation is a contractionary (restrictive) fiscal policy.
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