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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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    A Law Requiring the Federal Budget to Be Balanced Each
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A Law Requiring the Federal Budget to Be Balanced Each

Question 73

Question 73

Multiple Choice

A law requiring the federal budget to be balanced each year would likely:


A) make business cycles more severe.
B) make business cycles less severe.
C) not affect the severity of business cycles.
D) increase the effectiveness of automatic stabilizers.

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