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For Fiscal Policymakers, One of the Results of an Independent

Question 74

Multiple Choice

For fiscal policymakers, one of the results of an independent central bank is:


A) to finance government spending the Treasury has to order more currency from the central bank.
B) fiscal policymakers always have to borrow to increase spending.
C) fiscal policymakers cannot borrow unless the Federal Reserve prints more money.
D) increased government spending has to be financed with either higher taxes or increased government borrowing.

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