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Which of the following is true? a) All else equal, an increase in the government budget deficit will decrease prices over time. b) None of

Which of the following is true?

a) All else equal, an increase in the government budget deficit will decrease prices over time.

b) None of the other statements is true.

c) Monetary tightening will decrease the interest rate in the short run.

d) If tax revenue decreases, the horizontal shift in the IS curve will be smaller than the resulting change in the short-term equilibrium income.

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