Question

If an inflationary gap exists, which action would be categorized as a short run fiscal policy?

A) There is an increase in the discount rate.

B) There is an increase in government spending.

C) The government issues an increase in tax rates.

D) There is an increase in the reserve requirement.

Answer 1

Answer:

C) The government issues an increase in tax rates.

Answer 2

Answer:




C the goveent issues an increase in tax rates