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If the Economy Were Booming, We Would Expect

Question 19

Multiple Choice

If the economy were booming, we would expect


A) government expenditure to be high and tax revenues to be low causing a large budget deficit.
B) government expenditure to be low and tax revenues to be low so that the government could pay off the national debt.
C) government expenditure to be low and tax revenues to be high to that the public sector might be running a surplus.
D) none of the above

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