Suppose the government is trying to fix a recession. Using monetary policy, they could (increase/decrease) the...
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↑ Suppose the government is trying to fix a recession. Using monetary policy, they could (increase/decrease) the interest rate to increase (increase/decrease) the money supply or (Consumption/Investment/Government purchases/Net Exports) (increase/decrease) taxes or ↑ Using fiscal policy, they could (increase/decrease) Government purchases. However, changing Government purchases has a multiplier effect on purchases/Net Exports) and "crowds out" Purchases/Net Exports), making it difficult to estimate its effectiveness (Consumption/Investment/Government (Consumption/Investment/Government ↑ Suppose the government is trying to fix a recession. Using monetary policy, they could (increase/decrease) the interest rate to increase (increase/decrease) the money supply or (Consumption/Investment/Government purchases/Net Exports) (increase/decrease) taxes or ↑ Using fiscal policy, they could (increase/decrease) Government purchases. However, changing Government purchases has a multiplier effect on purchases/Net Exports) and "crowds out" Purchases/Net Exports), making it difficult to estimate its effectiveness (Consumption/Investment/Government (Consumption/Investment/Government
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