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Suppose the Economy Is Currently at Full Employment

Question 42

Multiple Choice

Suppose the economy is currently at full employment. It is likely that:


A) a sustained deficit will lead to an increase in the rate of inflation.
B) a sustained deficit will have no affect on the rate of inflation.
C) a sustained deficit will lead to a increase in GDP.
D) a sustained deficit will lead to an decrease in the rate of inflation.

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