As the global economy advances, the recent decline in the value of the US dollar puts pressure on the United States to raise the inflation rate to the 2% target. There can be several ways to do this, all arising from the LM-IS curve. If one were to assume that the IS curve was elastic, a fiscal policy could be the solution to raise interest rates. If the government were to reduce taxes or increase government spending, it would shift the IS curve to the right. This shift would create a new equilibrium point with the LM curve. This new point will have naturally rising interest rates, which will help inflation reach the target point. It is up to the government to decide which fiscal policy would be most effective. However, if we cut taxes on consumers, one can expect that consumption would increase among consumers and overall GDP would increase. Once again, the Federal Reserve is trying to control the growth of the economy by raising Fed rates, so it can be expected that once the natural inflation rate has to increase before the action is