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Which of the Following Policy Options Would Tend to Offset

Question 18

Multiple Choice

Which of the following policy options would tend to offset each other?


A) A decrease in the discount rate and a decrease in the reserve requirement.
B) An increase in the discount rate and a decrease in the tax rate.
C) An increase in the reserve requirement and an open market sale by the Fed.
D) An increase in the tax rate and a decrease in government spending.

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