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20. Fiscal Policy
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Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
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Problem 12
20. Fiscal Policy
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20. Fiscal Policy / Introduction to Fiscal Policy / Problem 3
Problem 3
In response to a recession, a government decides to increase infrastructure spending and decrease taxes. What is the likely impact on the economy?
A
Increased aggregate demand and economic growth.
B
Increased inflation without affecting aggregate demand.
C
Decreased aggregate demand and economic contraction.
D
Decreased inflation and reduced economic activity.
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