The existence of a political business cycle implies that, prior to the election, the incumbent administration would
Question:
The existence of a political business cycle implies that, prior to the election, the incumbent administration would
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a. increase aggregate demand by increasing government spending and the money supply.
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b. increase aggregate demand by increasing government spending and decreasing the money supply.
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c. increase aggregate demand by decreasing government spending and the money supply.
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d. decrease aggregate demand by increasing government spending and the money supply.
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e. decrease aggregate demand by increasing government spending and decreasing the money supply.
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