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  3. Study Set
    Principles of Economics Study Set 8
  4. Exam
    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    Suppose There Is a Tax Decrease
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Suppose There Is a Tax Decrease

Question 134

Question 134

Multiple Choice

Suppose there is a tax decrease. To stabilize output, the Federal Reserve could


A) decrease government spending.
B) decrease the money supply.
C) increase government spending.
D) increase the money supply.

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