Question: What is likely to be the effect of an increase in the budget deficit?
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a.a reduction in inflation
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b.a reduction in the volume of spending
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c.an increase in effective demand
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d.an increase in unemployment
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e.None of the above
Answer: c
 a reduction in inflation b) a reduction in the volume of spending c) an increase in effective demand d) an increase in unemployment e) None of the above Ans. c) an increase in effective demand
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