Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

If all other factors stay unchanged, what are the probable effects on the US budget deficit and on the supply of US government bonds if the US government raises its spending?

  • AUS budget deficit decrease; supply of US government bonds decrease
  • BUS budget deficit decrease; supply of US government bonds increase
  • CUS budget deficit increase; supply of US government bonds decrease
  • DUS budget deficit increase; supply of US government bonds increase

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