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Government Purchases of Goods and Services _____, While Changes in Taxes

Question 195

Multiple Choice

Government purchases of goods and services _____, while changes in taxes and transfer payments _____.


A) are exercises of fiscal policy; are exercises of monetary policy
B) are exercises of monetary policy; are exercises of fiscal policy
C) influence aggregate demand directly; influence aggregate demand indirectly
D) influence aggregate demand indirectly; influence aggregate demand directly

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