Asked by Michelle Kotey on Jul 15, 2024

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Each of the following could be used to fight inflation,except

A) decreasing government spending.
B) raising taxes.
C) budget surpluses.
D) budget deficits.

Budget Surpluses

Occurs when a government, company, or individual receives more income than it spends over a specified period, leading to excess funds.

Government Spending

The total amount of money spent by the government on various services, including healthcare, education, and defense.

  • Identify the challenges posed by inflationary recessions and strategies to combat them.
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JM
Janee MitchellJul 19, 2024
Final Answer :
D
Explanation :
Budget deficits can actually contribute to inflation, as they increase government spending and can lead to an increase in the money supply. Decreasing government spending, raising taxes, and running budget surpluses are more effective ways to fight inflation as they reduce the amount of money in circulation and decrease aggregate demand.