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If the Fed's Goal Is to Hold Income Constant,an Expansionary

Question 48

Multiple Choice

If the Fed's goal is to hold income constant,an expansionary fiscal policy must be accompanied by ________ monetary policy,and the Fed must allow the interest rate to ________ significantly.


A) an expansionary,rise
B) an expansionary,fall
C) a contractionary,rise
D) a contractionary,fall

Correct Answer:

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