select the correct answer.\nthe economy of a country has shown signs of overheating, such as high inflation…

select the correct answer.\nthe economy of a country has shown signs of overheating, such as high inflation rates. the government decides to implement fiscal policy. which action should it take to achieve the nations economic goals?\na. reduce taxes\nb. increase taxes\nc. increase spending\nd. increase job opportunities

select the correct answer.\nthe economy of a country has shown signs of overheating, such as high inflation rates. the government decides to implement fiscal policy. which action should it take to achieve the nations economic goals?\na. reduce taxes\nb. increase taxes\nc. increase spending\nd. increase job opportunities

Answer

Answer:

B. increase taxes

Brief Explanations:

When the economy is overheating with high - inflation, increasing taxes reduces disposable income. This decreases consumer spending and aggregate demand, helping to cool down the economy and control inflation.