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41. Which one of the following would be the most appropriate stabilization policy if the economy is operating beyond its long-run potential capacity? a. an

41.

Which one of the following would be the most appropriate stabilization policy if the economy is

operating beyond its long-run potential capacity?

a.

an increase in the discount rate

b.

an increase in government purchases, holding taxes constant

c.

a reduction in reserve requirements

d.

a reduction in taxes, holding government purchases constant

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