Anti-inflationary fiscal policies include which of the following?
A)cutting government spending
B)raising taxes
C)raising interest rates
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

Cutting government spending and raising taxes are both anti-inflationary fiscal policies because they decrease the amount of money circulating in the economy which can help to reduce inflation. Raising interest rates is a monetary policy tool used by central banks to control inflation, it is not a fiscal policy.

Anti-Inflationary Fiscal Policies Include Which of the Following