For the purpose of stabilizing the macro economy

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Reference no: EM13830471

For the purpose of stabilizing the macro economy, which of the policies below are suitable for a situation when aggregate demand is excessive, or when there is a large -GDP gap?

[choose two responses]

tax rate increase

tax rate decrease

higher interest rate

lower interest rate

FED buys Treasury securities in the open market

Reference no: EM13830471

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