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The inflation rate is dropping to the point that many economists are worried that deflation is occurring. Which of the 4 options would an economist most likely recommend to Congress as a solution to deflation?

A. decrease spending on grants for small businesses.

B. increase taxes on sales of luxury goods.

C. increase taxes for large corporations.

D. reduce taxes for business owners.

I think, A?

1 answer

I disagree.

https://www.investopedia.com/articles/investing/030915/top-6-ways-governments-fight-deflation.asp
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