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Which of the followings is not true in case of expansionary fiscal policy ?

Increasing property taxes to curb house prices restrains disposable resources/property demand and is contractionary in the stated context, so it is the exception. Higher…

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Which of the followings is not true in case of expansionary fiscal policy ?

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Increasing property taxes to curb house prices restrains disposable resources/property demand and is contractionary in the stated context, so it is the exception. Higher unemployment benefits and pensions expand transfers; start-up subsidies support private activity; public infrastructure investment raises government demand. All three latter measures are expansionary, other things equal. Increase of unemployment benefits and state pensions. — Not selected for the specific reasons given above. Increase of property taxes to check escalating house prices. — Selected; the independent derivation above supports this complete choice. Government support for business start-ups through subsidies. — Not selected for the specific reasons given above. Increasing of Public Sector Investment on infrastructure. — Not selected for the specific reasons given above.

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