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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy
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    Which of the Following Policy Alternatives Would Be an Appropriate
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Which of the Following Policy Alternatives Would Be an Appropriate

Question 43

Question 43

Multiple Choice

Which of the following policy alternatives would be an appropriate response to a sharp increase in investment spending,assuming policymakers want to stabilize output?


A) increase taxes
B) increase the money supply
C) increase government expenditures
D) All of the above are correct.

Correct Answer:

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