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Use the Figure Below to Answer the Following Questions

Question 42

Multiple Choice

Use the figure below to answer the following questions.
Use the figure below to answer the following questions. Figure 26.3.3 -Refer to Figure 26.3.3(b) . You might expect the government to A) do nothing except maintain the current equilibrium. B) cut government expenditure. C) increase government expenditure. D) pursue trade policies that reduce exports. E) raise taxes.
Figure 26.3.3
-Refer to Figure 26.3.3(b) . You might expect the government to


A) do nothing except maintain the current equilibrium.
B) cut government expenditure.
C) increase government expenditure.
D) pursue trade policies that reduce exports.
E) raise taxes.

Correct Answer:

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