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The Size of the Structural Deficit Tells Us

Question 34

Multiple Choice

The size of the structural deficit tells us


A) what increase to expect in the actual deficit over the next fiscal period.
B) what relative impact current fiscal policy is having on the economy.
C) what size tax increase is needed to balance the budget.
D) the best way to finance the current deficit.
E) how much of the budget should be financed by borrowing and how much by raising taxes.

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