Question

Increasing taxes would be appropriate to
A-slow the inflation rate
B-speed up the inflation rate
C-create deflation
D-create stagflaction

Answer 1

The correct answer among the choices is letter:

A – slow the inflation rate

Increasing the tax is an example of a contractionary fiscal policy. Since taxes are higher, this will result in slow consumer spending and therefore slow the inflation rate. 

Answer 2

Answer:

The correct answer is A, "slow the inflation rate."

Explanation:

I just got it correct on the test. I hope this helps!