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    Macroeconomics Study Set 9
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    Exam 15: Fiscal Policy and the Government Budget in the Long Run
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    The Conventional View Among Economists Is That Persistent Budget Deficits
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The Conventional View Among Economists Is That Persistent Budget Deficits

Question 49

Question 49

Multiple Choice

The conventional view among economists is that persistent budget deficits lead to a ________ capital stock and a ________ level of potential GDP in the long run.


A) larger; higher
B) larger; lower
C) smaller; higher
D) smaller; lower

Correct Answer:

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