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Suppose a nation has consistently run a budget deficit for many years. If the size of the government budget deficit decreases, this will decrease the
Suppose a nation has consistently run a budget deficit for many years. If the size of the government budget deficit decreases, this will decrease the merchandise trade deficit, since: A. The nation's capital account balance will be credited. B. The nation's currency will appreciate. C. The interest rates will go up. D. Demand for loanable funds will decrease. E. Capital inflows will increase
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