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  3. Study Set
    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
  5. Question
    Suppose There Is an Increase in Government Spending
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Suppose There Is an Increase in Government Spending

Question 71

Question 71

Multiple Choice

Suppose there is an increase in government spending.To stabilize output,the Federal Reserve would


A) increase government spending.
B) increase the money supply.
C) decrease government spending.
D) decrease the money supply.

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