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AP® Macroeconomics

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Fiscal Policy: Expansionary Fiscal Policy

APMACR-WA6FFG

In order to combat a severe recession, Country A should take which of the following actions?

I. Increase taxes
II. Increase government spending
III. Decrease taxes

A

I only.

B

II only.

C

I and II only.

D

I and III only.

E

II and III only.