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41 Crowding out: O is federal government policy on taxes. spending, and borrowing that is designed to influence business fluctuations. O is the decrease in
41 Crowding out: O is federal government policy on taxes. spending, and borrowing that is designed to influence business fluctuations. O is the decrease in private spending that occurs when government spending increases O is central bank policy on the monetary base, interest rates, and bank reserves that is designed to influence business fluctuations. O occurs when people see that lower taxes today means higher taxes in the future, so they quickly spend the tax cut.Question 42 In what way are monetary and fiscal policies similar? O They are both effective when the economy suffers from real shocks. O Both are insulated from the political process. O They both target aggregate demand to overcome business fluctuations. O Neither involves a lag
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