asked in Business+Finance by
Can someone distinguish the two  and give an example where they are economically applied 

Please log in or register to answer this question.

1 Answer

0 thanks
answered by LEGEND (6,391 points) 5 10 21
Contractional fiscal policy involves increasing taxes and decreasing government policy expenditure or both in order to fight inflationary pressures.Its accompanied by contractional monetray policies such as increasing interest rates and decreasing money supply in the money market thus access to money becomes difficult.

Expansionary involves decreasing taxes and increasing government expenditure or both in order to fight recessionary pressures.It is accompanied by expansionary boost monetary policies like reducing interest rate and increasing money supply in the market thus making access to money easier.

2,891 questions

9,148 answers

4,469 replies

1,898 users

Most active Members
March 2019:
  1. Leyley - 41 activities
  2. erictsuma - 21 activities
  3. iamdahmmy - 17 activities
  4. Shahadat Anonto - 17 activities
  5. pinakigoswami - 12 activities
  6. Celticeagle - 11 activities
  7. SmartAZ - 8 activities
  8. rsaxena50 - 5 activities
  9. jlopezondok - 5 activities
  10. Mukhtervi - 4 activities
Most answered Members
February 2019:
  1. Leyley - 24 answers
  2. iamdahmmy - 18 answers
  3. abonafideasian - 17 answers
  4. SmartAZ - 17 answers
  5. erictsuma - 13 answers
  6. Franklin5525 - 5 answers
  7. HoroScope Predictor - 4 answers
  8. jodiann12 - 3 answers
  9. bryangreene - 3 answers
  10. Brinksley - 2 answers