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4. In oil exporting countries, where government budgets are significantly financed by oil revenues, the governments can often borrow easily during oil price booms and

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4. In oil exporting countries, where government budgets are significantly financed by oil revenues, the governments can often borrow easily during oil price booms and become credit rationed when oil prices drop very low. If the government does not have large savings, this phenomenon is likely to make its fiscal policy: Procyclical

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