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Q: If there is high inflation and the federal government spends less and raises taxes the government is utilizing .?
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If their is high inflation and the federal government spends less and raises taxes the government is utilizing what?

fiscal policy


Who raises and funds the military?

The federal government i think


Which federal tax raises the largest amount of money each year?

Federal Income tax is the largest tax for the government, it raises more money then anything else.


Which tax raises the most revenue for the federal government?

personal income tax


What is the chief way the federal government raises revenue?

Individual income taxes. @DJSCREAM21


Cola raises are linked to?

The Cola raises is linked to high inflation rate and the high cost of living.


What situation are see by economics as causes failure?

Greed causes inflation; when someone raises prices, that causes someone else to raise their prices...then the next person raises theirs, then the next, the next...inflation.


Why printing more bills raises a countries inflation?

because they save ink


Why would a country in a state of war suffer high inflation rates?

Government raises taxes to pay for the war. People retaliate by raising their prices to keep making the same amount of money.


What did Kennedy to to help curtail rising unemployment and inflation and stimulate economic growth?

Asked businesses to limit prices and workers to accept fewer pay raises.


Why might it be a bad idea to create money to cover budget deficits?

Printing money to cover deficits creates inflation. This raises interest rates and prices which usually leads to more government expenditure and larger deficits.


What is a major problem for businesses during a period of chronic inflation?

It is a simple reason. Chronic inflation causes price rise across the board, all commodities affected. From the housewife buying vegetables to the jewelers, businessmen and everyone else using fuel. What also happens during chronic inflation situations is the government raises the interest rates. So while prices of all goods have gotten expensive so had the cost of borrowing. A difficult time for everyone. Btw the way, the government raises interest rates to curb the cash flow fueling the high prices. So if the cash flow decreased then prices will fall.