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Considering Primary Effects Through the Price Level, Interest Rates, and Income

Question 110

Multiple Choice

Considering primary effects through the price level, interest rates, and income only, expansionary fiscal policy:


A) increases both the supply and demand for dollars.
B) reduces the supply of dollars and increases the demand.
C) increases the supply of dollars but reduces the demand.
D) reduces both the supply and demand for dollars.

Correct Answer:

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