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What Would an Increase in the Budget Deficit Most Likely

Question 187

Multiple Choice

What would an increase in the budget deficit most likely do to investment spending?


A) It would make investment spending fall because the interest rate rises.
B) It would make investment spending rise because the interest rate falls.
C) It would make investment spending fall because the interest rate falls.
D) It would make investment spending rise because the interest rate rises.

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