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Methods of Financing Government Spending Are Described by an Expression

Question 4

Multiple Choice

Methods of financing government spending are described by an expression called the government budget constraint,which states the following


A) DEFICIT = (G - T) = ΔMB + ΔBONDS.
B) DEFICIT = (G - T) = ΔMB - ΔBONDS.
C) DEFICIT = (G - T) = ΔBONDS - ΔMB.
D) DEFICIT = (G - T) = ΔMB/ΔBONDS.

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