During the Great Depression,real GDP decreased,unemployment soared,and the inflation rate was negative.Which would have been the appropriate federal government policy combination to improve economic performance?
A) increase government expenditure,decrease taxes,increase the quantity of money
B) increase government expenditure,decrease taxes,decrease the quantity of money
C) decrease government expenditure,increase taxes,decrease the quantity of money
D) do not change government expenditures or taxes ,increase the quantity of money
E) decrease government expenditures,increase taxes,do not change the quantity of money
Correct Answer:
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