The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem?

a. raise taxesb) increase spendingeliminatec) decrease interest ratesd) increase reserve requirements

Question

Social Studies

Reuben Haney

8 April, 13:11

The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem?

a. raise taxesb) increase spendingeliminatec) decrease interest ratesd) increase reserve requirements

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Answers (1)

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Layla Davies · Answer 1

Inflation is an economic term which generally refers to the increase of prices for both services and goods. So in this case, the value of the money you own would also decrease. If the economy experiences one, then what the fiscal policy should do to rectify this is to decrease the interest rates. The answer is C.

The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem?a. raise taxesb) increase spendingeliminatec) decrease interest ratesd) increase reserve requirements

The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem?

a. raise taxesb) increase spendingeliminatec) decrease interest ratesd) increase reserve requirements