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Government Budget Deficits

Question 74

Multiple Choice

Government budget deficits


A) discourage household saving,which increases interest rates and reduces planned investment spending
B) encourage household saving,which increases the funds available for planned investment spending
C) reduce the demand for funds,lower interest rates,and increase planned investment spending
D) discourage planned investment spending by putting upward pressure on interest rates
E) stimulate economic growth by encouraging capital investment

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