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| An economy is at the peak of the business cycle. Which of the following policy packages is the most effective way to dampen the economy and prevent inflation? A. Reduce government spending, increase taxes, reduce money supply and increase interest rates. B. Increase government spending, reduce taxes, increase money supply, and reduce interest rates. C. Reduce government spending, increase taxes, increase money supply, and increase interest rates. D. Reduce government spending, reduce taxes, reduce money supply, and reduce interest rates. |