Question

magine that you are living in the newly formed U.S. Inflation is high. The value of money is decreasing, and prices are rising. You have been asked by the federal government to come up with a solution to this issue. In the space provided, create a plan that would help to solve the issue of inflation. Support your plan with details and evidence from the lesson.

Answer 1

In order for the value of money to decrease that would mean that it is more available to the public, so raise taxes on goods and services. Though there isn't much to do as inflation is natural over the years, not on a quick amount of time. So it's a very problematic situation. But usually when less money is available prices go down as well, as if the prices are too high, the said business would end up failing, resulting in either lowering prices or making some sort of discount.