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Economist a Says All of the Following: the Economy Needs

Question 54

Multiple Choice

Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap.Government should either raise its _____________ or cut ___________________.I believe the government spending multiplier is ____________ than the tax multiplier,so I favor _____________________.


A) spending; taxes; larger; cutting taxes
B) taxes; spending; larger; raising; spending
C) spending; taxes; larger; raising; spending
D) b or c
E) a or c

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