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If a Country Is Trying to Recover from a Recent

Question 127

Multiple Choice

If a country is trying to recover from a recent recession,it is unlikely the central bank will decide to ________ because it would ________.


A) increase taxes;increase aggregate demand
B) institute a tax cut;increase aggregate demand
C) raise interest rates;decrease aggregate demand
D) lower interest rates;decrease aggregate demand
E) raise interest rates;increase aggregate demand

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