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In our closed economy IS-LM model, in the short run, an increase in government spending that causes an increase in the budget deficit: O A.

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In our closed economy IS-LM model, in the short run, an increase in government spending that causes an increase in the budget deficit: O A. affects the level of output but not its composition O B. is neutral with respect to all real variables O C. affects only the price level O D. affects both the level and composition of output O E. none of the above

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