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Which of the following is a TRUE statement?
Tax Cuts
Reduction in tax rates intended to stimulate economic activity or achieve other policy goals.
Government Purchases
Spending on goods and services by local, state, and federal governments
Monetary Policy
The process by which a central bank or monetary authority manages the supply of money and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.
Fiscal Policy
Government policies related to taxation and spending that are used to influence the economy, including efforts to manage demand, stimulate economic growth, or control inflation.
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