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6 2 pts If a government's budget deficits are increasing aggregate demand when the economy is already producing near potential GDP, causing a threat of
6 2 pts If a government's budget deficits are increasing aggregate demand when the economy is already producing near potential GDP, causing a threat of an inflationary increase in price levels, then the central bank may react with: a discretionary monetary policy. an expansionary monetary policy. a contractionary monetary policy. a loose monetary policy
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Core Macroeconomics
Authors: Eric Chiang
3rd edition
978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435
