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Discretionary fiscal policy is limited by the fact that Select one: a. increases in the deficit can lower interest rates, encouraging too much borrowing.

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Discretionary fiscal policy is limited by the fact that Select one: a. increases in the deficit can lower interest rates, encouraging too much borrowing. Ob. increases in government outlays can eventually mean people do not want to work. c. increases in the deficit can raise interest rates, discouraging borrowing by firms. O d. increases in government outlays can push up wage rates, discouraging hiring by firms.

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