In the short run, a federal budget deficit will most likely _____. a. reduce national saving...

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Question

In the short run, a federal budget deficit will most likely _____. a. reduce national saving...

In the short run, a federal budget deficit will most likely _____.

a. reduce national saving

b. reduce federal debt

c. stimulate aggregate supply

d. boost economic growth

e. boost domestic saving

business economics

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Answer 1

Answer #1

In the short run, a federal budget deficit will most likely _____

Answer: When we have a budgetary deficit situation, then it spends higher than the revenue that it earns, as a result of which level of national saving falls. Hence the answer will be:

a. reduce national saving.

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Answer 2

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In the short run, a federal budget deficit will most likely _____. a. reduce national saving...

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