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Suppose the U.S. government decides to increase the budget deficit. Which of the following will most likely increase? I. interest rates II. government borrowing III.

Suppose the U.S. government decides to increase the budget deficit. Which of the following will most likely increase?

I. interest rates

II. government borrowing

III. unemployment

IV. GDP

V. Household consumption

Select one:

A. Only I, II, III and V are correct.

B. Only II, III and IV are correct.

C. Only I, II and IV are correct.

D. All are correct.

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