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Japan's Increase in Government Spending Financed by Borrowing in Response

Question 23

Multiple Choice

Japan's increase in government spending financed by borrowing in response to the economic downturn and sluggish growth of the 1990s is most consistent with


A) the Keynesian view of appropriate fiscal policy.
B) the supply-side view of appropriate fiscal policy.
C) the crowding-out theory of fiscal policy.
D) the view that the government should maintain a balanced budget.

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