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Suppose the Government Has a $375 Billion Budget Deficit

Question 38

Multiple Choice

Suppose the government has a $375 billion budget deficit. If the government creates $225 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be


A) $150 billion.
B) $225 billion.
C) $375 billion.
D) $600 billion.

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