The correct answers is: "Because it helps to control inflation and to ensure price stability".
A contractionary fiscal policy, consists on increasing the interest rate, which is the price charged by financial institutions for borrowed funds.
If such price increases, the amount of borrowed funds that investors are willing to demand decreases (inverse relationship of price and quantity demanded). Therefore, such adverse conditions, restrict the amount of money in circulation in the economy, the so-called money supply. This generates a contraction of the total output, but it also helps to control inflation because it causes a generalized price decrease.
