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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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    If a Country Has a Very High Level of Public
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If a Country Has a Very High Level of Public

Question 194

Question 194

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If a country has a very high level of public debt, lenders may insist on austerity measures of raising taxes and decreasing government spending, which worsens economic conditions.

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