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    Macroeconomics A Contemporary Introduction Study Set 1
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    Exam 15: Monetary Theory and Policy
  5. Question
    The Fed Can Close a Recessionary Gap By
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The Fed Can Close a Recessionary Gap By

Question 125

Question 125

Multiple Choice

The Fed can close a recessionary gap by:


A) increasing fiscal expenditure.
B) increasing taxes.
C) decreasing taxes.
D) selling U.S.government bonds.
E) lowering the discount rate.

Correct Answer:

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