Why is it difficult for the federal government to make larger cuts in spending?

It difficult for the federal government to make larger cuts in spending, because the largest part of government spending is fixed and cannot be easily reduced.

Option B

Explanation:

The federal government is the central government of the country and is concerned with the welfare and the betterment of the people and for this purpose only the federal government has to spend huge amount of money for the development purposes of the country and for solving the problems of the country.

Huge amount is spent by the government and it cannot be reduced because the amount is fixed by the government and is very tough to bring a reduction in these expenditures.

the correct answer is d. the monetary reserve is a set of funds represented in currency, money or similar, saved as a forecast of possible needs or for legal reasons.

the increase or decrease in the monetary base influences in the increase or decrease of the inflation rate. therefore, the excess of monetary reserve will cause the reduction of inflation.