--%>
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 : Organization of employees-Division of

    ‘Mama’ Jean consists of one employee bake crumbly, graham cracker crusts at Mama’s Home-Pies, whereas the other stirs gooey, hot, apple filling. Her staff is organized in accord with a/an: (1) Task management system. (2) Division of labor. (3) Compar

    		•
  • Q : Illustrate the 4th role is the

    Illustrate the 4th role is the reallocation of resources?

    		•
  • Q : Elucidate state expenditures and

    Elucidate state expenditures and receipts for all states in 1998?

    		•
  • Q : Impact of dollar on aspects of

    Question Discuss the impact of dollar depreciation on the various aspects of American Economy. Devaluation of the DollarIntroduction:

    		•
  • Q : Restriction of laissez-faire government

    A laissez-faire government is restricted to finding: (1) property rights within a simple fashion and to enforcing private contracts. (2) market prices which guarantee equitable resource allocations. (c) how resources will be allocated efficiently. (4)

    		•
  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : What are the facts of inflation What

    What are the facts of inflation?

    		•
  • Q : Banking crisis on checkable deposits

    Question: Some developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis decreases depositors' confidence in the banking syst

    		•
  • Q : Explain Unemployment Explain

    Explain Unemployment, Growth, and the Future?

    		•
  • Q : What 2 points are required to emphasis

    What 2 points are required to emphasis foreign exchange market?

    		•