which best explains how contractionary policies can hamper economic growth? they increase consumer demand…

which best explains how contractionary policies can hamper economic growth? they increase consumer demand. they can increase inflation. they reduce taxes which raises deficits. they reduce disposable income.

which best explains how contractionary policies can hamper economic growth? they increase consumer demand. they can increase inflation. they reduce taxes which raises deficits. they reduce disposable income.

Answer

Brief Explanations:

Contractionary policies, like higher taxes or reduced government spending, lower disposable income. Less disposable income means less consumer spending, which can slow economic growth. Increasing consumer demand would boost growth, not hamper it. Contractionary policies aim to reduce inflation, not increase it. They often involve tax - increases or spending - cuts, not tax - reductions.

Answer:

They reduce disposable income.