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raise income taxes and decrease government spending

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13y ago

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Related Questions

How did the federal government respond to the savings and loan crisis?

sucking my balls


How might the federal reserve respond to the slowdown in the economy or recession?

By buying bonds in the open market


How did the federal government respond to the the September 11 attacks?

The federal government responded to the 9/11 attacks by passing the USA Patriot Act.


How would the government most likely respond to decrease in consumer spending?

Lower taxes to make it easier for consumers and business to spend money.


How might the federal reserve to an overheated economy or boom?

The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.


How would a government most likely respond to a slowdown in the economy?

Lowering taxes in order to stimulate spending


How does the federal reserve respond to a slow down in the economy or recession?

In response to a slowdown in the economy or a recession, the Federal Reserve typically implements expansionary monetary policy. This may involve lowering interest rates to make borrowing cheaper, which encourages spending and investment. The Fed may also engage in quantitative easing, purchasing government securities to increase money supply and stimulate economic activity. Additionally, they can provide forward guidance to signal their intentions for future monetary policy, aiming to bolster consumer and business confidence.


Why is the federal government allowed to borrow money to go into debt?

The federal government is allowed to borrow money to finance its operations and manage the economy, as authorized by the Constitution. This borrowing enables the government to fund essential services, invest in infrastructure, and respond to economic crises without immediately raising taxes or cutting spending. Additionally, the ability to incur debt can help stabilize the economy during downturns by allowing for increased government spending when private sector demand is low. Ultimately, borrowing can be a tool for promoting long-term economic growth and maintaining fiscal flexibility.


How did the federal government respond to rioting in Detroit?

it sent army troops to help state police stop the violence


How would the government Respond to a slowdown in economy?

Stop printing money.


How might the federal reserve respond to and overheated economy or boom?

To address an overheated economy or boom, the Federal Reserve may increase interest rates to curb inflation and moderate economic growth. This makes borrowing more expensive, which can reduce consumer spending and business investment. Additionally, the Fed might implement measures such as reducing the money supply through open market operations. These actions aim to stabilize the economy and prevent it from overheating, ultimately ensuring sustainable growth.


How did the economy respond to hoovers efforts?

Hoover bailed out the failing banks and big businesses with Federal money. The result was a market crash, and the Great Depression.