If the government wishes to increase the level of real GDP, it might reduce:
A. the size of the budget deficit.
B. its purchases of goods and services.
C. transfer payments.
D. taxes.
Answer: D
Economics
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If Treasury deposits at the Fed are predicted to fall, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
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