The government can reduce inflation with the help of both fiscal and monetary policy. An effective combination of these policies to reduce inflation would be to:.
a. Increase taxes; lower the reserve requirement ratio
b. Increase taxes; sell government bonds
c. Decrease taxes; buy government bonds
d. Decrease government spending; lower discount rate
Answers: 1
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The government can reduce inflation with the help of both fiscal and monetary policy. An effective c...
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