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Suppose There Is an Increase in the Federal Budget Deficit

Question 150

Multiple Choice

Suppose there is an increase in the federal budget deficit.Which of the following may result?  


A)  It may create deflation. 
B)  It may decrease aggregate demand. 
C)  It may decrease aggregate quantity demanded along a stationary aggregate demand curve. 
D)  It may raise the equilibrium level of output and employment.

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