--%>

Tax revenues to reduce rate of inflation

Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?

E

Expert

Verified

To reduce the rate of inflation, government should reduce aggregate spending for goods and services in the economy. It can do so by decreasing its own spending and/or by increasing taxes, which would induce consumers to spend less.  It could also encourage the monetary authorities to reduce the supply of money and credit.

   Related Questions in Business Economics

  • Q : Write short note on Markets Write short

    Write short note on Markets?

  • Q : Economic crisis situation in Europe

    Question: Describe the present economic crisis situation in Europe.   Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world i

  • Q : Case of arbitrage while selling and

    Assume that melons sell for $5 in Brazil when moose pelts sell for $10, still into Canada melons sell for $10 as well as moose pelts sell for $5. A person who buys moose pelts within Canada to sell into Brazil would be doing: (1) speculation. (2) the “invisible

  • Q : Illustrate a fundamental characteristic

    Illustrate a fundamental characteristic of demand behavior?

  • Q : Speculators activities over the long-run

    Over the long-run the speculators activities are tend to: (1) decrease the volatility of prices. (2) attract legal attention and result in imprisonment. (3) increase the level and volatility of prices both. (4) yield tremendous profits and raise costs

  • Q : Competition among buyers and sellers is

    Illustrate Competition among buyers and sellers is a controlling mechanism?

  • Q : Change in supply and a change in the

    Distinguish between a change in supply and a change in the quantity supplied?

  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

  • Q : Describe the output effects of Inflation

    Describe the output effects of Inflation?

  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1460521 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1931589
    Asked

    3,689

    Active Tutors

    1460521

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.