Question: Which of the following is an appropriate government policy for closing deflationary gap?
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a.an increase in the rate of interest
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b.an open market sale of bonds
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c.an increase in government spending
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d.an increase in income tax
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e.None of these
Answer: c
 an increase in the rate of interest b) an open market sale of bonds c) an increase in government spending d) an increase in income tax e) None of these Ans. c) an increase in government spending
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