Question

Which tool would the government most likely employ during a period of inflation to stabilize the economy?

raise cash rates
lower cash rates
raise government spending
lower government spending

Answer 1

Lower cash rates

Step-by-step explanation:

On odyssey ware this is the correct answer

Answer 2

During a period of inflation the government will most likely employ the following technique to stabilize the economy: raise government spending.Government may decide to increase government spending as a result of a recession. The increase in government spending or a decrease in taxation is an expansionary fiscal policy.