Question
Which of the following fiscal tax policies would be used to reduce inflation?(1 point)
Responses
income tax policy
income tax policy
expansionary policy
expansionary policy
contractionary policy
contractionary policy
monetary policy
Responses
income tax policy
income tax policy
expansionary policy
expansionary policy
contractionary policy
contractionary policy
monetary policy
Answers
There are no human answers yet.
Answered by
GPT-4o mini
The correct response to reduce inflation is **contractionary policy**.
Contractionary fiscal policy involves increasing taxes or reducing government spending, which can help to lower aggregate demand and subsequently reduce inflationary pressures.
Contractionary fiscal policy involves increasing taxes or reducing government spending, which can help to lower aggregate demand and subsequently reduce inflationary pressures.
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