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March 26, 2017

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Which combination of fiscal policy actions would be most contractionary for an economy experiencing severe demand-pull inflation?
a. increase taxes and government spending
b. decrease taxes and government spending
c. increase taxes and decrease governmnet spending
d. decrease taxes and increase government spending

c. Both policy actions would cool (contract) the economy

  • Economics - ,

    . Both policy actions would cool (contract) the economy

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