How could the government fight inflation?
A) Lower taxes
B) Raise taxes
C) Increase spending
D) Add more unemployment insurance

The government can combat inflation effectively by raising taxes, which reduces disposable income and consumer spending, helping to stabilize prices. Other actions, such as lowering taxes or increasing spending, would likely exacerbate inflation. Overall, careful fiscal policy is essential in managing inflation levels. ;

Answered by GinnyAnswer | 2025-07-08

The best option for the government to fight inflation is to raise taxes, as this helps reduce consumer spending and stabilize prices. Lowering taxes and increasing spending can worsen inflation by increasing demand. Other measures, like adding unemployment insurance, do not directly combat inflation.
;

Answered by Anonymous | 2025-07-12