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Question
Suppose that Congress passes a budget that increases government spending. Also, suppose that this increase in government spending causes an increase in interest rates and a reduction in planned investment. The effect of this fiscal policy action on planned investment is known as which of the following?
A) cost-push inflation
B) demand-pull inflation
C) automatic stabilizers
D) none of the above
Answer
This answer is hidden. It contains 1 characters.
Related questions
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