Consider a closed-economy AD/AS macro model.An expansionary fiscal policy will generally increase the government's budget ________ and also tends to ________ and thus ________ private investment.
A) deficit; raise interest rates; decrease
B) surplus; reduce interest rates; increase
C) deficit; raise interest rates; increase
D) surplus; reduce interest rates; decrease
E) deficit; reduce interest rates; increase
Correct Answer:
Verified
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