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1) Fiscal policy is A) the selling of government bonds by the Treasury. B) the deliberate manipulation of the money supply designed to affect the
1) Fiscal policy is
A) the selling of government bonds by the Treasury.
B) the deliberate manipulation of the money supply designed to affect the interest rate.
C) the deliberate manipulation of taxation and spending designed to affect the economy.
D) the selling of foreign exchange reserves designed to change the exchange rate.
Elaborate on your answer.
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