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Suppose That the Federal Government Initially Has a Balanced Budget

Question 24

Multiple Choice

Suppose that the federal government initially has a balanced budget. Which of the following changes in government tax revenues and expenditures over time will definitely lead to an increase in the national debt?Tax Revenue Expenditures


A) Increase No change
B) Increase Decrease
C) Decrease Increase
D) No change Decrease

Correct Answer:

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