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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    An Increase in the Budget Deficit
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An Increase in the Budget Deficit

Question 147

Question 147

Multiple Choice

An increase in the budget deficit


A) reduces investment because the interest rate rises.
B) reduces investment because the interest rate falls.
C) raises investment because the interest rate rises.
D) raises investment because the interest rate falls.

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