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    Principles of Macroeconomics Study Set 7
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    Exam 7: Fiscal Policy
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    What Is an Appropriate Reason for the Government to Borrow
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What Is an Appropriate Reason for the Government to Borrow

Question 101

Question 101

Multiple Choice

What is an appropriate reason for the government to borrow money?


A) To compensate for a lower bond rating.
B) To encourage foreign ownership of the debt.
C) To inject new spending into the economy.
D) To discourage waste in fiscal affairs.

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