--%>
Assignment Help - homework help

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 : Main economic functions of government

    Enumerate and briefly discuss the main economic functions of government.  Which of these functions do you think is the most controversial?  Why?

    		•
  • Q : Fiscal Policy Fiscal Policy : Public or

    Fiscal Policy:Public or government finance is a field of economics. This deals with budgeting the revenues and expenditures of government (i.e., or public sector). It is regarding the identi

    		•
  • Q : Construct a 2-D graph which comprises

    How to construct a 2-D graph which comprises drawing a horizontal and a vertical axis?

    		•
  • Q : Elucidate the overview of Business Cycle

    Elucidate the overview of Business Cycle?

    		•
  • Q : How do you account for the dominant

    How do you account for the dominant role of corporations in the U.S. economy?

    		•
  • Q : Guideline for monetary policy using

    Question: In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables? Answer: <

    		•
  • Q : Economics chapter 1 Suppose that on the

    Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr

    		•
  • Q : Profit in perfect competition leads to

    An increase within demand for "green-certified" products will ________ a firm's economic profit, and the raise within costs to have a product certified like "green" will ________ a firm's economic profit: w) increase; increase x) increase; decrease y)

    		•
  • Q : Significant that economics is not a

    Why is it significant that economics is not a laboratory science?  What problems may be evolved in deriving and applying economic principles?

    		•
  • Q : Help How is a shift in demand reflected

    How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?

    		•