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    Economics Principles and Policy Study Set 2
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    Exam 27: Managing Aggregate Demand: Fiscal Policy
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    If the Federal Government Wishes to Move the Economy Out
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If the Federal Government Wishes to Move the Economy Out

Question 31

Question 31

Multiple Choice

If the federal government wishes to move the economy out of a recessionary gap, the appropriate fiscal policy is a(n)


A) increase in taxes.
B) decrease in government purchases.
C) decrease in transfer payments.
D) None of the above is correct.

Correct Answer:

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