a government is facing high inflation, then it will take an action as following: I. increase taxes, increase discount rate II. decrease taxes, decrease discount rate III. increase taxes, decrease discount rate IV. decrease taxes, increase discount rate

a government is facing high inflation, then it will take an action as following: I. increase taxes, increase discount rate II. decrease taxes, decrease discount rate III. increase taxes, decrease discount rate IV. decrease taxes, increase discount rate

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter17: Stabilizing The National Economy

Section17.1: Unemployment And Inflation

Problem 4R

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Question

a government is facing high inflation, then it will take an action as following:

	I.	increase taxes, increase discount rate
	II.	decrease taxes, decrease discount rate
	III.	increase taxes, decrease discount rate
	IV.	decrease taxes, increase discount rate

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