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Which of the following policies causes the twin deficit effect to worsen? A. The Fed decides to increase its official reserves B. An expansionary fiscal

Which of the following policies causes the twin deficit effect to worsen?

A. The Fed decides to increase its official reserves

B. An expansionary fiscal policy that increases the federal budget deficit

C. An expansionary monetary policy

D. Both a contractionary fiscal policy and an expansionary monetary policy

E. A contractionary fiscal policy that decreases budget deficit

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