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If the government increases expenditure without raising taxes, this will: a. increase the budget deficit and require the government to acquire additional funds. b. cause interest rates to rise

If the government increases expenditure without raising taxes, this will:

a. increase the budget deficit and require the government to acquire additional funds. 

b. cause interest rates to rise, thereby reducing private investment and crowding-out the private sector. 

c. cause a decrease in the domestic exchange rate, which will increase exports and decrease imports. 

d. all of the above. 

e. A and B only. 

Apr 30 2021 View more View Less

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