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When a Recessionary Gap Exists,what Should the Government Do to Address

Question 89

Multiple Choice

When a recessionary gap exists,what should the government do to address the situation?


A) Increase its own spending and tax rates.
B) Decrease its own spending and tax rates.
C) Increase its own spending or decrease tax rates.
D) Decrease its own spending or increase tax rates.
E) Decrease its own spending but leave tax rates unchanged.

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