Use the list below to answer the question.

- The unemployment rate has increased from 5% to 10%
- The inflation rate has fallen by 6%

Which action would Congress most likely take to address the conditions on this list?

A. Increase government spending
B. Increase the discount rate
C. Increase taxes
D. Decrease the required reserve ratio

Question

22-07-2024
Social Studies

Answered

Use the list below to answer the question.

- The unemployment rate has increased from 5% to 10%
- The inflation rate has fallen by 6%

Which action would Congress most likely take to address the conditions on this list?

A. Increase government spending
B. Increase the discount rate
C. Increase taxes
D. Decrease the required reserve ratio

Answer :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-22T18:09:41-04:00

Final answer:

To address increased unemployment and decreased inflation rates, Congress would likely increase government spending as part of an expansionary fiscal policy.

Explanation:

Congress would most likely take the action to increase government spending to address the conditions of increased unemployment and decreased inflation rates. This is known as an expansionary fiscal policy, aimed at stimulating output and decreasing unemployment in the economy.

Learn more about economic policies here:

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