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To Close a Contractionary Gap Using Fiscal Policy,the Government Can

Question 98

Multiple Choice

To close a contractionary gap using fiscal policy,the government can


A) increase taxes by the size of the gap
B) decrease taxes by the size of the gap
C) increase taxes by more than the size of the gap
D) decrease taxes by less than the size of the gap
E) decrease taxes by more than the size of the gap

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