Advanced Placement (AP), 04.03.2021 01:00 bryan9892

Which of the following combinations of fiscal and monetary policies will cause the greatest increase in real GDP? Fiscal Policy / Monetary Policy

A. Increase personal income taxes / Buy bonds
B. Increase government spending / Buy bonds
C. Decrease personal income taxes / Increase the discount rate
D. Decrease government spending / Increase the discount rate
E. Decrease personal income taxes / Sell bonds

Answers: 3

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