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Assume That the Federal Government Wishes to Counteract Inflation with a Policy

Question 5

Multiple Choice

Assume that the federal government wishes to counteract inflation with a policy that has the smallest impact on the federal budget.Which of the following would you recommend?


A) Increase transfer payments.
B) Increase government purchases.
C) Decrease government purchases.
D) Decrease transfer payments.
E) Increase personal income taxes.

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