Which combination of fiscal policies would be most effective in addressing an inflationary gap? (1 point) Decrease government spending and the central bank sells government bonds Decrease government spending and increase income taxes Increase government spending and decrease transfer payments Central bank buys government bonds and decrease taxes Increase government spending and increase taxes by the same amount 19. (05.04 MC) Which of the following statements concerning the national debt of Country X is most true? (1 point) Economists worry about an increased debt burden when they see foreign investors buying previously issued government debt. Economists worry that deficit financing and an increased national debt will increase the rate of unemployment. Economists worry that a growing national debt could increase future interest payments, reducing the government's ability to fund needed infrastructure and educational initiatives. Economists worry that when the central bank owns previously existing government bonds that they cannot initiate open-market operations. Economists worry that any trade surplus for Country X will lead to foreigners owning more of Country X's debt. 20