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The economy is doing well but prices for goods and services are increasing at a faster pace. Determine the
course of action that could be taken to help the economy. (1 point)
A contractionary fiscal policy involving increases in individual and corporat tax rates as
well as cuts to subsidies and the number of government employees would help to slow
inflation.
An expansionary fiscal policy involving cuts to individual tax rates and increased
investments in infrastructure could be used to strengthen the economy.
An expansionary fiscal policy involving increases to corporate tax rates and increased
payments to people who receive entitlements could be used to help with inflation.
A contractionary fiscal policy involving decreases to individual and corporate tax rates as
well as infrastructure projects and subsidies could be used to weaken the economy.
Sagot :
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