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skygnat835Lv1
28 Sep 2019
Assume that the economy is at full employment and is experiencing rapid inflation. Which of the following combinations of monetary and fiscal policies would reduce inflation most, assuming the dollar values for both policy changes are the same amount?
A. Monetary Policy - Buy government securities; Fiscal Policy - Increase the federal budget deficit
B. Monetary Policy - Buy government securities; Fiscal Policy - Decrease the federal budget deficit
C. Monetary Policy - Sell government securities; Fiscal Policy - Increase the federal budget deficit
D. Monetary Policy - Sell government securities; Fiscal Policy - Decrease the federal budget deficit
Assume that the economy is at full employment and is experiencing rapid inflation. Which of the following combinations of monetary and fiscal policies would reduce inflation most, assuming the dollar values for both policy changes are the same amount?
A. Monetary Policy - Buy government securities; Fiscal Policy - Increase the federal budget deficit
B. Monetary Policy - Buy government securities; Fiscal Policy - Decrease the federal budget deficit
C. Monetary Policy - Sell government securities; Fiscal Policy - Increase the federal budget deficit
D. Monetary Policy - Sell government securities; Fiscal Policy - Decrease the federal budget deficit
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28 Sep 2019
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