In a closed economy,if the government is already running a budget deficit and then decides to increase spending by $50 billion without raising taxes,one can expect

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In a closed economy, increased government spending without raising taxes typically leads to a decrease in private investment and/or consumption due to the crowding-out effect, as the government borrows more from the financial markets, leaving less available for private sector borrowing.

In a Closed Economy,if the Government Is Already Running a Budget