To complement actions by the Bank of Canada to reduce inflation, the federal government can cut spending and/or raise taxes.

Question

Quizplus · Accepted Answer

Cutting government spending and raising taxes can help reduce inflation by reducing demand in the economy, which can help alleviate inflationary pressures. This policy tool is often used in conjunction with monetary policy actions taken by the central bank to target inflation.

To Complement Actions by the Bank of Canada to Reduce