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Assuming Government Wishes to Either Increase or Decrease the Level

Question 61

Multiple Choice

Assuming government wishes to either increase or decrease the level of aggregate demand,which of the following pairs are not consistent policy measures?


A) A tax increase and an increase in the money supply.
B) A tax reduction and an increase in the money supply.
C) A reduction in government expenditures and a decline in the money supply.
D) A tax increase and an increase in the interest rate.

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