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The Actual Budget Balance of the Federal Government in 2005

Question 54

Multiple Choice

The actual budget balance of the federal government in 2005 was about $ +5.7 billion. On the basis of this information it:


A) can be concluded that the economy was faced with serious inflation in 2005.
B) cannot be determined whether fiscal policy had an expansionary or a contractionary impact in 2005.
C) can be concluded that fiscal policy was contractionary in 2005.
D) can be concluded that fiscal policy was expansionary in 2005.

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