In the short-run, a government budget deficit produced by a tax cut
A) increases consumption spending and shifts the LM curve to the right.
B) increases consumption spending and shifts the IS curve to the right.
C) decreases consumption spending and shifts the LM curve to the left.
D) decreases consumption spending and shifts the IS curve to the left.
Correct Answer:
Verified
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Q60: An increase in the government's budget deficit
A)
Q61: A decrease in the government's budget deficit
A)
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