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In which of these ways can a government tackle increasing deficit in a fixed exchange rate system? Select a Choice Below current question choices OptionA
In which of these ways can a government tackle increasing deficit in a fixed exchange rate system? Select a Choice Below current question choices OptionA The government increases the money supply by increasing the interest rates on bonds to unacceptably high levels. OptionB The government deals with the deficit situation by increasing the tax rates. OptionC The government increases the money supply by printing new notes. OptionD The government moves to a floating exchange rate system in order to deal with the problem of increasing deficit
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