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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    Which of the Following Fiscal Policies Would Make a Budget
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Which of the Following Fiscal Policies Would Make a Budget

Question 317

Question 317

Multiple Choice

Which of the following fiscal policies would make a budget surplus larger or a budget deficit smaller?


A) an increase in government purchases of goods and services
B) lower government transfers
C) lower taxes
D) higher interest rates

Correct Answer:

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