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14. Large persistent government budget deficits may have various effects on the economy. Which of the following would be one of their potential effects? a.
14. Large persistent government budget deficits may have various effects on the economy.
Which of the following would be one of their potential effects?
a. encourage excessively expansionary monetary policy.
b. increase the risk of government default risk.
c. raise the interest rate.
d. discourage investment and hence reduce growth
e. All of the above.
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