The correct answer is：C
Higher taxes and lower government subsidies Fiscal policy is the balance of government taxation and spending. A contractionary fiscal policy implies a government budget surplus—the government is reducing demand by withdrawing higher amounts from the economy by way of higher taxation and/or spending less.
Lower taxes and higher government subsidies would be the result of an expansionary fiscal policy.
Higher interest rates and higher inflation may happen as a result of an expansionary policy as an economy ‘booms’. Lower inflation and lower interest rates may happen following a contractionary fiscal policy，although lower inflation and interest rates are only a secondary effect. As an economy enters recession, inflationary pressure may decrease and interest rates may be reduced to encourage borrowing. However as these are not directly due to fiscal policy， C is the more direct and immediate impact.
以上就是acca F9练习题，多多练习才能拿下acca！如果想要了解更多acca相关信息，请关注中公财经网。
