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14 May, 23:36

Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then the Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?

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  1. 15 May, 01:22
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    Taxes - Increase Government spending - decrease Required reserve ratio - decrease Discount rate - not change
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