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A Government Increases Its Internal Debt for All of the Following

Question 27

Multiple Choice

A government increases its internal debt for all of the following reasons EXCEPT which of the following reasons EXCEPT ________.


A) The tax system is so poorly run that the government cannot collect all the revenues it expects.
B) Government costs such as security and social programs exceed total tax revenues.
C) The government borrows money from international financial institutions.
D) State-owned enterprises run large deficits.

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