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Delhi Police Constable 2 Dec 2020 Shift 1 Solved Paper

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Question : 1

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What does the government do in a contractionary fiscal policy for lowering inflation?

Reduce the quantum of money by decreasing taxes and increasing spending
Increase the quantum of money by raising taxes and reducing spending
Increase the quantum of money by decreasing taxes and increasing spending
Reduce the quantum of money by raising taxes and reducing spending

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