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    International Economics Study Set 9
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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
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    If a Government Must Run a Balanced Budget, Then Tax
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If a Government Must Run a Balanced Budget, Then Tax

Question 21

Question 21

Multiple Choice

If a government must run a balanced budget, then tax revenues and government spending:


A) move roughly in opposite directions.
B) move exactly in opposite directions.
C) move exactly in the same direction.
D) move roughly in the same direction.

Correct Answer:

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