The best government policy during a period of inflation,ceteris paribus,is to balance the federal budget.

Question

Quizplus · Accepted Answer

Balancing the federal budget during a period of inflation may not be an effective government policy as it may lead to reduced government spending and increased taxes, which can further aggravate the inflationary pressures in the economy. Instead, the government may adopt policies such as increasing the interest rates, reducing the money supply, or implementing price controls to control inflation.

The Best Government Policy During a Period of Inflation,ceteris Paribus,is