Use the Figure Below to Answer the Following Questions

question 69

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.3
-Refer to Figure 26.3.3(a) . You might expect the government to

• A)do nothing except maintain the current equilibrium.
• B)cut government expenditure.
• C)increase government expenditure.
• D)pursue trade policies that reduce exports.
• E)raise taxes.

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