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30 November, 09:21

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

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  1. 30 November, 10:01
    0
    I believe the correct answer from the choices listed above is the third option. A tool that the government most likely employ during a period of inflation to stabilize the economy would be raising government spending.

    Hope this answers the question. Have a nice day.
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