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Which of the following best describes the economic effect that results from

the government having a budget surplus?

A. Government spending increases, increasing competition for goods

and services and driving prices up.

B. Consumers save more and spend less, enabling long-term

financial planning

C. Overall demand decreases, reducing the incentive for producers to

increase production.

D. Banks have more deposits, enabling them to make more loans to

investors

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Answers (1)
  1. 15 December, 20:44
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    C. Overall demand decreases reducing production
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