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Assuming government wishes to increase the level of RGDP, which of the following pairs is the consistent policy measures? 1) lower government spending and an

Assuming government wishes to increase the level of RGDP, which of the following pairs is the consistent policy measures?

1) lower government spending and an increase in the money supply

2) a tax reduction and an increase in the money supply

3) a reduction in government expenditures and a decline in the money supply

4) a tax increase and an increase in the interest rate

5) none of these choices

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