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    Macroeconomics Study Set 49
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    Exam 36: Macro Policy in a Global Setting
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    Expansionary Fiscal Policy Increases Income, Which Increases Imports and Hence
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Expansionary Fiscal Policy Increases Income, Which Increases Imports and Hence

Question 8

Question 8

True/False

Expansionary fiscal policy increases income, which increases imports and hence the size of the trade deficit.

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