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From a Monetarist Perspective, an Expansionary Fiscal Policy's Effect on Aggregate

Question 2

Multiple Choice

From a monetarist perspective, an expansionary fiscal policy's effect on aggregate demand would be offset by:


A) The buying of government securities by the Treasury
B) The selling of government securities by the Treasury
C) A cut in the Federal funds rate
D) A cut in the discount rate

Correct Answer:

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