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    Principles of Macroeconomics Study Set 12
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    Exam 14: Financial Crises, Stabilization, and Deficits
  5. Question
    Without Deficit Targeting, a Negative Demand Shock Results in a Decrease
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Without Deficit Targeting, a Negative Demand Shock Results in a Decrease

Question 34

Question 34

True/False

Without deficit targeting, a negative demand shock results in a decrease in income, but with deficit targeting, a negative demand shock results in an increase in income.

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