The government of the United States is worried that the inflation rate is too high. What fiscal policy would the US government adopt to reduce the inflation rate? O A lower the income tax rate B lower the federal interest rate invest in public works projects D decrease government spending

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 1CQ
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The government of the United States is worried that the inflation rate is too high. What fiscal policy would the US government adopt to reduce the inflation rate?
A
lower the jncome tax rate
B
lower the federal interest rate
invest in public works projects
decrease government spending
©2021Illuminate EducationTM, Inc.
Transcribed Image Text:The government of the United States is worried that the inflation rate is too high. What fiscal policy would the US government adopt to reduce the inflation rate? A lower the jncome tax rate B lower the federal interest rate invest in public works projects decrease government spending ©2021Illuminate EducationTM, Inc.
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