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21 April, 20:36

Which of the following fiscal policies would mostly likely reduce unemployment?

Increasing funding for local grants

Lowering reserve requirements

Raising taxes on small business

Selling more government securities

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  1. 21 April, 20:37
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    Answer: lowering reserve requirements

    By lowering reserve ratio, commercial banks hold less cash, which means that they have more money available to make loans to businesses and consumers. Incresaing loans drives to more production and consumption, which leads to economic growth and employment increase.
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