Question

Increasing taxes would be appropriate to

A-slow the inflation rate
B-speed up the inflation rate
C-create deflation
D-create stagflaction

Answer 1

The correct answer is A, "slow the inflation rate."

Step-by-step explanation:

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Answer 2

The correct answer among the choices is letter:

A – slow the inflation rate

Increasing the tax is an example of a contractionary fiscal policy. Since taxes are higher, this will result in slow consumer spending and therefore slow the inflation rate.