If the government wanted to use discretionary fiscal policy to reduce inflation in the short run, it would
A. increase taxes or decrease government spending
B. decrease taxes or increase government spending
C. increase both taxes and government spending
D. decrease both taxes and government spending
Answer:B
If the government wanted to use discretionary fiscal policy to reduce inflation in the short run, it would
A. increase taxes or decrease government spending B. decrease taxes or increase government spending C. increase both taxes and government spending D. decrease both taxes and government spending