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According to Monetarists, a Fiscal Deficit Will Be Associated with an Increase

Question 112

Multiple Choice

According to monetarists, a fiscal deficit will be associated with an increase in real output


A) regardless of the character of accompanying changes in M or V.
B) only if it is accompanied by an increase in the demand for money.
C) only if it is accompanied by an increase in the supply of money.
D) only if it is financed by selling government bonds to the public.

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