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An Increase in Government Transfer Payments of $250 Billion and a Tax

Question 274

Multiple Choice

An increase in government transfer payments of $250 billion and a tax cut of $250 billion will have _____ effects on the budget balance and _____ effects on real GDP.


A) equal; equal
B) equal; unequal
C) unequal; equal
D) unequal; unequal

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