In the Long Run, Higher Government Budget Deficits Will

Multiple Choice

In the long run, higher government budget deficits will

A) lead to a redistribution of real GDP from privately produced goods and services to government produced goods and services.
B) lead to a redistribution of real GDP from government produced goods and services to privately produced goods and services.
C) cause the price level to go down on government goods but not on private goods.
D) lead to a reduction in the amount of goods and services produced by the government and private sector.