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What Set of Fiscal Policies Could the Government Use to Close

Question 11

Multiple Choice

What set of fiscal policies could the government use to close an expansionary gap?  


A)  decrease taxes, increase government purchases, and increase transfer payments 
B)  increase taxes, increase government purchases, and increase transfer payments 
C)  increase taxes, increase transfer payments, and decrease government purchases 
D)  increase taxes, decrease transfer payments, and decrease government purchases

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