The fiscal tax policy that would be used to reduce inflation is contractionary policy. This policy typically involves reducing government spending or increasing taxes to decrease the overall money supply and demand in the economy, which can help to lower inflation.
Which of the following fiscal tax policies would be used to reduce inflation?(1 point)
Responses
monetary policy
monetary policy
expansionary policy
expansionary policy
income tax policy
income tax policy
contractionary policy
1 answer
1 answer