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    Principles of Economics Study Set 8
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    Exam 26: Saving, Investment, and the Financial System
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    When the Government Increases Spending (Holding Taxes Constant), the Budget
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When the Government Increases Spending (Holding Taxes Constant), the Budget

Question 174

Question 174

Short Answer

When the government increases spending (holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____.

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