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The Federal Government's Annual Taxing and Spending Decisions Are Important

Question 16

Multiple Choice

The federal government's annual taxing and spending decisions are important to the American economy because:


A) they directly and almost instantaneously affect Federal Reserve decisions about the discount rate.
B) decisions about how much to tax and spend affect the overall health of the economy.
C) they can directly increase or reduce the risks that banks run in making loans to consumers and businesses.
D) poor decisions or unintended consequences can keep the Federal Reserve from effectively fighting inflation when it must.

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