How Might Fiscal Policy Be Used to Correct an Inflationary

question 247

Multiple Choice

How might fiscal policy be used to correct an inflationary gap?

• A)The exchange rate would be adjusted to encourage imports.
• B)The exchange rate would be adjusted to discourage imports.
• C)The interest rate would be adjusted to encourage saving.
• D)Taxes would be increased to reduce aggregate demand.

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Lack Of Control

A state or condition where an individual feels they have no influence or command over situations or outcomes.

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