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The Large Federal Deficits of the 1980s and Early 2000s

Question 39

Multiple Choice

The large federal deficits of the 1980s and early 2000s were financed, in large measure, by


A) large increases in private saving.
B) large increases in the trade deficit.
C) large reductions in foreign saving.
D) large increases in investment that spurred growth.
E) large increases in private, domestic consumption financed by credit cards.

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