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1.Which fiscal policy guideline do you believe that governments should follow? Annually balanced budgets, cyclically balanced budgets, or functional finance? Explain why you believe this

1.Which fiscal policy guideline do you believe that governments should follow? Annually balanced budgets, cyclically balanced budgets, or functional finance? Explain why you believe this should be so.

2."A reduction in public debt should cause an increase in investment." Evaluate this statement giving reasons in for your evaluation.

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