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Everything Else Equal, an Increase in the Government Budget Deficit

Question 16

Multiple Choice

Everything else equal, an increase in the government budget deficit would:
I. Increase the government's demand for funds
II. Shift the demand curve for funds to the left
III. Increase the interest rate in the economy


A) II only
B) I and II only
C) I and III only
D) I, II, and III

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