Contractionary fiscal policy uses ________ government spending and ________ taxes to decrease aggregate economic activity.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Correct Answer:
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Q121: Which of the following should be increased
Q122: If the federal funds rate is set
Q124: Suppose the inflation rate target is zero
Q125: Suppose the inflation rate target is zero
Q126: Contractionary fiscal policy leads to a _.
A)
Q127: Expansionary fiscal policy leads to a _.
A)
Q128: Which of the following is an example
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