Questions and Answers
What does the government budget impact?
Inflation and economic growth
How can a government budget deficit affect the economy?
By increasing interest rates and crowding out private investment
What is a potential consequence of a government budget surplus?
Reduced public investment and economic slowdown
Which of the following is a potential consequence of a government budget deficit?
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How can a government budget surplus impact the economy?
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What effect can an expansionary fiscal policy have on the government budget?
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