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Which of These Is NOT a Cost of Using Fiscal

Question 39

Multiple Choice

Which of these is NOT a cost of using fiscal or monetary policy to address a jobless recovery?


A) Expansionary monetary policy may lead to inflation in the long run.
B) Government spending might crowd out spending by consumers and firms.
C) Lower interest rates encourage consumers to increase spending.
D) Cutting taxes and increasing government spending increases the national debt.

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