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When a Government Changes Its Fiscal Policy,what Is It Doing

Question 76

Multiple Choice

When a government changes its fiscal policy,what is it doing?


A) changing the exchange rates to influence national income
B) increasing the money supply to increase national income
C) changing government spending and/or tax rates to achieve some objective
D) using government spending and taxes together with changing the money supply in order to achieve full employment
E) buying and selling government securities to increase or decrease the overnight lending rate

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