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Which of the following would most likely be the steps for the central bank of Country A to take to keep an expansionary monetary policy in place?


Buy bonds to increase the money supply and lower the interest rate.


Increase the discount rate to lower the real interest rate and raise investments.


Reduce taxes to lower the discount rate and raise consumption.


Increase the reserve requirement to decrease the interest and increase investment.


Increase government expenditures to lower the interest rate which raises investment.

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