If the economy suffers a recession for reasons unrelated to fiscal policy, the deficit should rise and
A) inflation should fall.
B) interest rates should fall.
C) real GDP should fall.
D) All of the above are correct.
Correct Answer:
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Q87: During the late 1980s and early 1990s,
Q87: A recessionary gap causes national debt to
Q88: Until about 1983, almost all of the
Q89: With no change in fiscal policy, the
Q90: Under a balanced budget policy, a sharp
Q92: During the period from 1945 to 1975,
Q92: The net national debt is smaller than
Q96: To correct the budget deficit for inflation,
Q97: Under a balanced budget policy, a sharp
Q99: The structural deficit/surplus budget
A)measures the federal budget
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