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Which of the Following Fiscal Policies Will Help Close an Expansionary

Question 133

Multiple Choice

Which of the following fiscal policies will help close an expansionary gap?  


A)  The government increases spending, which will increase aggregate demand. 
B)  The government increases spending, which will decrease aggregate demand. 
C)  The government decreases spending, which will increase aggregate demand. 
D)  The government decreases spending, which will decrease aggregate demand.

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