Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then th

Question

4 years ago

11

Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then th

e Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?

Business

1 answer:

Paraphin [41] · Answer 1 · 2022-02-09T00:36:27+03:00

Paraphin [41]4 years ago

7 0

Answer:

Taxes- Increase
Government spending- decrease
Required reserve ratio- decrease
Discount rate- not change