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In the Early 2000s, Car Sales in China Slowed Because

Question 24

Multiple Choice

In the early 2000s, car sales in China slowed because the government had been restricting credit growth. This action is consistent with the effects of:


A) contractionary fiscal or monetary policy.
B) contractionary fiscal policy but not contractionary monetary policy.
C) contractionary monetary policy but not contractionary fiscal policy.
D) expansionary fiscal policy.

Correct Answer:

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