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    Macroeconomics Study Set 17
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    Exam 16: Fiscal Policy
  5. Question
    Expansionary Fiscal Policy Involves
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Expansionary Fiscal Policy Involves

Question 34

Question 34

Multiple Choice

Expansionary fiscal policy involves


A) increasing government purchases or decreasing taxes.
B) increasing taxes or decreasing government purchases.
C) increasing the money supply and decreasing interest rates.
D) decreasing the money supply and increasing interest rates.

Correct Answer:

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