3. According to the traditional view of government debt, a debt-financed tax cut a. increases output in

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3. According to the traditional view of government debt, a debt-financed tax cut

a. increases output in both the short run and the long run.

b. decreases output in both the short run and the long run.

c. increases output in the short run but decreases it in the long run.

d. decreases output in the short run but increases it in the long run.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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