When the government increases its spending and/or decreases tax rates, it can this may conflict with the federal reserve's goal of lower inflation, shrinking the economy shrink the economy, raising prices encourage economic growth, lowering inflation

When the government increases its spending and/or decreases tax rates, it can shrink the economy.

This may conflict with the federal reserve's goal of lowering inflation. 

When government decrease tax while increase its spending, it would risk a deficit in the Government's budget.

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