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    Exam 17: Macroeconomic Policy and Floating Exchange Rates
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    13 a Government Budget Deficit Would Tend To
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13 a Government Budget Deficit Would Tend To

Question 55

Question 55

Multiple Choice

13 A government budget deficit would tend to:


A) lead to lower interest rates.
B) lead to higher interest rates.
C) reduce the supply of loanable funds.
D) cause a depreciation of the currency.
E) have no effect on interest rates.

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