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All Else Equal,an Increase in the Government's Budget Deficit Accompanied

Question 17

Multiple Choice

All else equal,an increase in the government's budget deficit accompanied by a decrease in corporate taxes would definitely result in


A) an increase in the equilibrium real interest rate.
B) a decrease in the equilibrium real interest rate.
C) an increase in the equilibrium level of saving and investment.
D) a decrease in the equilibrium level of saving and investment.

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