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    Exam 25: Spending and Output in the Short Run
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    A Fiscal Policy Action to Close an Expansionary Gap Is
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A Fiscal Policy Action to Close an Expansionary Gap Is

Question 27

Question 27

Multiple Choice

A fiscal policy action to close an expansionary gap is to:


A) increase taxes.
B) increase transfer payments.
C) increase government purchases.
D) increase the marginal propensity to consume.

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