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Which statement below about expansionary fiscal policy is true? It could include decreasing the reserve requirement. If it is based on a tax cut, it

Which statement below about expansionary fiscal policy is true?

  • It could include decreasing the reserve requirement.
  • If it is based on a tax cut, it will trigger the multiplier effect.
  • It generally has a negative effect on GDP.
  • It could include lowering interest rates.

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