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Chronic Budget Deficits Can Lead to All of the Following

Question 170

Multiple Choice

Chronic budget deficits can lead to all of the following, except


A) overallocation of resources to the government sector, away from the private sector.
B) "smaller government" in the economy.
C) investors losing faith in the government's ability to repay its debts.
D) government being forced to make drastic cuts in its spending.

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