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In a Closed Economy,what Will an Increase in Government Spending

Question 115

Multiple Choice

In a closed economy,what will an increase in government spending without an equivalent increase in tax revenue lead to?


A) a decrease in private saving and a decrease in investment
B) a decrease public saving and a decrease in investment
C) an increase in private saving and an increase in investment
D) an increase in public saving and an increase in investment

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