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    Foundations of Macroeconomics Study Set 2
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    Exam 10: Finance, Saving, and Investment
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    If a Government Has a Budget Deficit, It Must
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If a Government Has a Budget Deficit, It Must

Question 44

Question 44

Multiple Choice

If a government has a budget deficit, it must


A) increase taxes.
B) borrow in the loanable funds market.
C) decrease taxes.
D) lower the real interest rate.
E) decrease its expenditures.

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