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There Is No Reason to Worry About a Balance of Trade

Question 120

Multiple Choice

There is no reason to worry about a balance of trade deficit if it is the result of an inflow of capital


A) that is being channeled into productive investments.
B) that will make it less costly to increase government spending on programs that will help incumbent legislators get re-elected.
C) that is used to finance unemployment compensation benefits for a longer time period.
D) that is used to finance a large budget deficit.

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