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    Macroeconomics Study Set 37
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    Exam 13: Fiscal Policy
  5. Question
    We Use the Term Expansionary Fiscal Policy When the Overall
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We Use the Term Expansionary Fiscal Policy When the Overall

Question 22

Question 22

Multiple Choice

We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:


A) increase aggregate demand.
B) decrease aggregate demand.
C) increase aggregate supply.
D) decrease aggregate supply.

Correct Answer:

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