Final answer:
One recommended fiscal policy tool to lower inflation is to reduce government spending, while one recommended monetary policy tool is to increase interest rates.
Step-by-step explanation:
Fiscal Policy Tool: One recommended fiscal policy tool to lower the inflation rate is to reduce government spending. When the government spends less, there is less demand in the economy, which can help reduce inflation. For example, if the government decreases spending on infrastructure projects, there will be fewer transactions and less money circulating in the economy.
Monetary Policy Tool: One recommended monetary policy tool to lower the inflation rate is to increase interest rates. When interest rates are higher, borrowing becomes more expensive and consumers and businesses are less likely to spend money. This decrease in spending can help reduce inflation. For instance, if the central bank raises interest rates, it becomes costlier for individuals and businesses to borrow money, leading to reduced spending and decreasing inflationary pressure.