According to the multiplier model, the best way to reduce inflation is to
A. increase aggregate demand by cutting government spending or raising taxes.
B. increase aggregate demand by raising government spending or cutting taxes.
C. decrease aggregate demand by cutting government spending or raising taxes.
D. decrease aggregate demand by raising government spending or cutting taxes.
Answer:C
According to the multiplier model, the best way to reduce inflation is to
A. increase aggregate demand by cutting government spending or raising taxes. B. increase aggregate demand by raising government spending or cutting taxes. C. decrease aggregate demand by cutting government spending or raising taxes. D. decrease aggregate demand by raising government spending or cutting taxes.