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    Economics Study Set 8
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    Exam 32: The Fiscal Policy Dilemma
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    When the Government Runs a Deficit, the Interest Rate Tends
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When the Government Runs a Deficit, the Interest Rate Tends

Question 77

Question 77

Multiple Choice

When the government runs a deficit, the interest rate tends to:


A) rise.
B) fall.
C) remain unchanged.
D) rise or fall, depending on how the deficit is financed.

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