Suppose There Is a Tax Increase

question 11

Multiple Choice

Suppose there is a tax increase.To stabilize output,the Federal Reserve will

• A)increase government spending.
• B)increase the money supply.
• C)decrease government spending.
• D)decrease the money supply.

---

Definitions:

Federal Crime

Illegal activities that violate federal laws and are prosecuted by the government of a country, rather than by individual states or local jurisdictions.

Punishable

Deserving or liable to be punished by law or other means due to breaking a rule or law.

Prison

A facility in which individuals are forcibly confined and deprived of a range of personal freedoms under the authority of the state as a form of punishment.

Immediate Action

A swift and direct response to a situation or emergency, typically to mitigate harm or address a pressing issue.