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Suppose That in Year 2 There Was a Lower Federal

Question 85

Multiple Choice

Suppose that in Year 2 there was a lower federal budget deficit than in Year 1. This could be explained by _ in Year 2.


A) a higher stock of government debt
B) higher government expenditures (with constant real GDP)
C) an upward shift of the budget deficit function
D) higher real GDP (with constant fiscal policy)
E) lower real GDP (with constant fiscal policy)

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