If the Government Implements a Restrictive Fiscal Policy, Then

question 1

Multiple Choice

If the government implements a restrictive fiscal policy, then

• A)the income velocity of money should increase
• B)the income velocity of money should decrease
• C)the income velocity of money should remain unaffected
• D)money demand should increase since people have to pay more taxes
• E)money demand and the income velocity of money should both decrease

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