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Which of the following is a contractionary fiscal policy?

AThe federal government builds a new medical research center at a prestigious state university.
BThe sales tax on clothing is lifted for one week before the school year begins.
CThe federal government sends taxpayers up to $300 each in the form of an income tax rebate.
DThe President and Congress pass a new 2-cent-per-gallon gasoline tax.

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Hagrid

The right answer for the question that is being asked and shown above is that: "a. The federal government builds a new medical research center at a prestigious state university." a contractionary fiscal policy is that a. The federal government builds a new medical research center at a prestigious state university.

a. The federal government builds a new medical research center at a prestigious state university.

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