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In a Closed Economy,an Increase in Government Spending,while Taxes Remain

Question 47

Multiple Choice

In a closed economy,an increase in government spending,while taxes remain the same,will be accompanied by


A) a decrease in private investment and an increase in privates saving.
B) an increase in private investment and a decrease in private savings.
C) a decrease in private investment only.
D) an increase in private savings only.

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