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The Actual Budget Deficit of the Federal Government in 2009

Question 31

Multiple Choice

The actual budget deficit of the federal government in 2009 was about $1.4 trillion.On the basis of this information, it


A) can be concluded that the economy was faced with serious inflation in 2009.
B) cannot be determined whether the government engaged in expansionary or contractionary fiscal policy in 2009.
C) can be concluded that fiscal policy was contractionary in 2009.
D) can be concluded that fiscal policy was expansionary in 2009.

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