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A Contractionary Fiscal Policy Is Likely to

Question 132

Multiple Choice

A contractionary fiscal policy is likely to


A) increase government borrowing, thereby shifting the supply curve for bonds to the right.
B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
C) increase government borrowing, thereby shifting the demand curve for bonds to the right.
D) reduce government borrowing, thereby shifting the demand curve for bonds to the left.

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