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  3. Study Set
    Economics Study Set 8
  4. Exam
    Exam 32: The Fiscal Policy Dilemma
  5. Question
    When the Government Runs a Deficit It Must
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When the Government Runs a Deficit It Must

Question 2

Question 2

Multiple Choice

When the government runs a deficit it must:


A) buy bonds to finance the deficit.
B) sell bonds to finance the deficit.
C) decrease the money supply to finance the deficit.
D) raise taxes immediately.

Correct Answer:

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