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To enact Discretionary, Expansionary Fiscal Policy, the government should A. increase the money supply to increase purchasing power in the economy. B. decrease the marginal
To enact Discretionary, Expansionary Fiscal Policy, the government should
A. increase the money supply to increase purchasing power in the economy.
B. decrease the marginal tax rate on lower income earners since they generally have a higher marginal propensity to consume than other consumers in the economy.
C. lower the Required Reserve Ratio to enable banks to loan more money to consumers and businesses.
D. increase the marginal tax rate (and thus increase overall tax revenues) on the wealthy since they can afford it.
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