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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 118

Question 118

Multiple Choice

An increase in the budget deficit


A) raises net exports and domestic investment.
B) raises net exports and reduces domestic investment.
C) reduces net exports and raises domestic investment.
D) reduces net exports and domestic investment.

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