Use the following to answer questions: 
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options.If the aggregate demand curve is AD,the most appropriate discretionary fiscal policy is to _____ government transfer payments and _____ income tax rates.
Definitions:
Effective-interest Amortization
A method of amortizing the premium or discount on bonds payable that reflects interest expense on the outstanding balance of the bond over its life.
Issue Price
The price at which a company's shares or bonds are made available for sale when they are first issued to the public.
Book Value
The net value of a company's assets minus its liabilities, indicating the total value of the company’s equity as recorded in the financial statements.
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