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Question regarding the automatic fiscal policy

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Reference no: EM131116728

Suppose the economy is in an expansion. According to automatic fiscal policy, which of the following would most likely occur?

  1. The existing budget deficit would decrease

  2. The existing budget deficit would increase

  3. The existing budget surplus would increase

  4. The existing balanced budget would go into deficit

  5. Both a. And c.

Reference no: EM131116728

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