Question

Which tool would the government most likely employ during a period of infilation to stabilize the economy

Answer 1

During a period of inflation the government will most likely employ the following technique to stabilize the economy: raise government spending.Government may decide to increase government spending as a result of a recession.

Answer 2

The tool they would use would be.... raising government spending I think that's because the government would rather do that then,

have the goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates. Reducing spending is important during inflation, because it helps halt economic growth and, in turn, the rate of inflation.

Hope this helps, sorry if not