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A federal government deficit may be financed by 1. the general public buying government bonds 2. commercial banks buying treasury bills 3. the Federal Reserve

A federal government deficit may be financed by 1. the general public buying government bonds 2. commercial banks buying treasury bills 3. the Federal Reserve selling securities

Answer

a.

1 and 2

b.

1 and 3

c.

2 and 3

d.

all of the above

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