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Congressman came to you for advice. If lower inflation is her only goal, which of the following are monetary policy tools that would achieve her desired result? (Note: select all that apply and be sure to limit your answer to fiscal policy tools that would lower inflation).

Question 2 options:

increase government spending


increase personal income tax rates


decrease the discount rate


buy government securities


decrease government spending


decrease personal income tax rates


increase the discount rate


sell government securities

1 Answer

3 votes
Decrease government spending
Decrease personal income tax rate
User Cozzamara
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