Inflation is rising. Which fiscal policy strategy would the federal government MOST LIKELY use to stabilize the economy?

A. decrease government spending and/or raise taxes

B. increase government spending and/or lower taxes

C. raise the discount rate and/or buy securities

D. lower the discount rate and/or sell securities

Question

Inflation is rising. Which fiscal policy strategy would the federal government MOST LIKELY use to stabilize the economy?

A. decrease government spending and/or raise taxes

B. increase government spending and/or lower taxes

C. raise the discount rate and/or buy securities

D. lower the discount rate and/or sell securities

anonymous · Answer

I think I took this test before what module is it?

anonymous · Answer

What do you mean by module? @Tpunt1125

anonymous · Answer

ur taking flvs economics online right? Their are sections for it like Module 1,2,3,4,5,6.

anonymous · Answer

I think its 6

anonymous · Answer

Thats not the topic for module 6.

anonymous · Answer

Then I don't know but I do need help on this

anonymous · Answer

Try using this to see if it helps just scroll down to the fiscal policy section.

anonymous · Answer

D and C are not correct that is for a monetary policy.