To restrain inflation, the government should reduce:

Name: To restrain inflation, the government should reduce:
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Question

Quizplus · Accepted Answer

To restrain inflation, the government can reduce transfer payments (such as subsidies, social security, and unemployment benefits) which decreases overall demand in the economy by reducing the amount of money available for consumers to spend. Reducing taxes or interest rates would typically stimulate demand and potentially increase inflation, not restrain it.

To Restrain Inflation, the Government Should Reduce