Multiple Choice
Use the following to answer questions .
Exhibit: Fiscal Policy 2 
-(Exhibit: Fiscal Policy 2) Suppose real GDP is equal to Yr. If policymakers want to close the output gap with demand management policies, what should they do?
A) lower corporate profit tax rates to encourage investments
B) increase investment tax credits to businesses
C) decrease government spending on transfer payments and on final goods and services
D) lower interest rates
Correct Answer:
Verified
Correct Answer:
Verified
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