18. If the federal government wants to encourage businesses and consumers to spend more money, it would probably decrease the tax rate increase the reserve requirement. decrease government spending increase the taxrate.

## Step 1<br />The problem is about the monetary and fiscal policies that the federal government can use to stimulate economic activity. The goal is to encourage businesses and consumers to spend more money.<br /><br />## Step 2<br />The first option is to decrease the tax rate. This would mean that consumers would have more disposable income, which could lead to increased spending. This is a common strategy used to stimulate economic activity.<br /><br />## Step 3<br />The second option is to increase the reserve requirement. This would mean that banks would have to hold more money in reserve, which would reduce the amount of money available for lending. This would not stimulate spending, but rather slow it down.<br /><br />## Step 4<br />The third option is to decrease government spending. This would mean that the government is spending less money, which could lead to a decrease in economic activity. This would not stimulate spending, but rather slow it down.<br /><br />## Step 5<br />The fourth option is to increase the tax rate. This would mean that consumers would have less disposable income could lead to decreased spending. This would not stimulate spending, but rather slow it down.