Question
Which of the following government actions could be used to slow down growth which is too rapid and leading to inflation?
Approve a new project to repair 100 bridges across many states
Install a new federal sales tax of 5% on all goods and services except for food and prescription drugs
Give all income tax payers a $1000 refund.
Approve a 5% increase in Social Security benefits for all retirees and anyone on disability payments.
Answer
Install a new federal sales tax of 5% on all goods and services except for food and prescription drugs.