A financial analyst has noticed a serious rise in inflation.What course of action might the financial analyst advise the government to take in order to reduce inflation?
A) The government can lower taxes.
B) The government can raise taxes.
C) Encourage the government to increase spending.
D) Encourage consumers to increase spending.
E) Encourage the government to increase spending and lower taxes.

Question

Quizplus · Accepted Answer

B)Raising taxes encourages consumers to spend less, thereby curbing inflation.

A Financial Analyst Has Noticed a Serious Rise in Inflation