Which of the following is an example of a contractionary fiscal policy?

increasing government expenditure

a) increasing taxes

b) cutting transfer payments

c) A and B

d) B and C

The effects of a change in government expenditure has a multiplier effect

a) because a change in government expenditure changes potential GDP.

b) because taxes are left unchanged.

c) because the resulting change in disposable income generates changes in consumption expenditure.

d) only when there is a decrease in expenditure.

e) only when there is an increase in expenditure