The government of the united states is worried that the inflation rate is too high. what fiscal policy would the us government adopt to reduce the inflation rate?
group of answer choices

decrease government spending

lower the income tax rate

lower the federal interest rate

invest in public works projects

decrease government spending

Explanation:

Since government spending leads to employment generation and business activity which in turn increases incomes and spending. A decrease in government spending will keep demand and consequently inflation in check.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.