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Question 24 (1 point) If a government's budget deficits are increasing aggregate demand when the economy is already producing near potential GDP, causing a threat

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Question 24 (1 point) 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) an expansionary monetary policy. O b) a loose monetary policy. O c) a contractionary monetary policy. O d) a discretionary monetary policy

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