Question

The economy of a country has shown signs of overheating, such as high inflation rates. the government decides to implement fiscal policy. which action should it take to achieve the nation’s economic goals? reduce taxes increase taxes increase spending increase job opportunities

Answer 1

Fiscal policy only include increasing/decreasing taxes or spending.

I think the answer is : Increase taxes.

One of the reason of high inflation is too much money exist within the people. With increasing taxes, people tend to consume less, which will lead to decrese in inflation

hope this helps

Answer 2

The answer is b) increase taxes.