Question

A government announces major cuts to individual and corporate taxes. What is the government likely seeking to achieve?

A
to promote full employment
B
to improve productive efficiency
C
to reduce the level of inflation
D
to increase export activity

Answer 1

C. to reduce the level of inflation

Step-by-step explanation:

There are various methods that are adopted by the government in order to control the situation of inflation. Control of wages to the individua and the corporate is one of the important method by which the inflation is controlled. The supply of money is controlled. Also, the rate of interests are also increased so as to cut down the demands. This further helps in sowing down the economic growth and inflation too.