Question
Which of the following fiscal tax policies would be used to reduce inflation? (1 point)
A. Income tax policy
B. Monetary policy
C. Expansionary policy
D. Contractionary policy
A. Income tax policy
B. Monetary policy
C. Expansionary policy
D. Contractionary policy
Answers
GPT-4o mini
D. Contractionary policy
Contractionary fiscal policy is used to reduce inflation by decreasing government spending or increasing taxes, which can help to lower overall demand in the economy.
Contractionary fiscal policy is used to reduce inflation by decreasing government spending or increasing taxes, which can help to lower overall demand in the economy.