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According to the Classical Advocates of Sound Finance, If an Economy

Question 37

Multiple Choice

According to the Classical advocates of sound finance, if an economy is in a recession, the government should run:


A) a budget deficit and increase spending, which will increase output.
B) a budget surplus and decrease spending, which will increase output.
C) neither a surplus nor a deficit since changes in deficit spending do not affect output.
D) neither a surplus nor a deficit since changes in spending affect output.

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