Multiple Choice
Which of the following changes could create a more positive output gap in an economy?
(i) Government spending increases.
(ii) There is a reduction in taxes.
(iii) The risk premium increases.
(iv) The default rates on loans falls.
A) (i) and (ii)
B) (iii) and (iv)
C) (i) , (ii) , and (iv)
D) (ii) , (iii) , and (iv)
Correct Answer:
Verified
Correct Answer:
Verified
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