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The Government's Cyclically Adjusted Budget Deficit (CAD)adjusts for

Question 34

Multiple Choice

The government's cyclically adjusted budget deficit (CAD) adjusts for


A) interest rate changes that affect the absolute amount of debt- service payments.
B) changes in spending or tax revenues caused by fluctuations in national income.
C) any primary budget surplus or deficit incurred by the federal government.
D) changes in investment to smooth fluctuations in national income.
E) increases in the money supply in excess of the real growth in the economy.

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