Which of the macroeconomic policies listed below is contractionary and will help reduce the rate of inflation?   Group of answer choices   A balanced budget increase in both government spending and autonomous taxes.   Open market purchases by the central bank.   Higher transfer payments to the general population to help offset higher prices.   Promotion of an appreciated domestic currency in foreign exchange markets.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 16SQ
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Which of the macroeconomic policies listed below is contractionary and will help reduce the rate of inflation?

 

Group of answer choices

 

A balanced budget increase in both government spending and autonomous taxes.

 

Open market purchases by the central bank.

 

Higher transfer payments to the general population to help offset higher prices.

 

Promotion of an appreciated domestic currency in foreign exchange markets.

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