A rise in government spending on large infrastructure projects, such as a new high speed railway line, would be most likely to A increase the budget deficit. B increase the budget surplus. C reduce the balance of payments deficit. D increase the balance of payments deficit.

A rise in government spending on large infrastructure projects, such as a new high speed railway line, would be most likely to A increase the budget deficit. B increase the budget surplus. C reduce the balance of payments deficit. D increase the balance of payments deficit.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter31: The Impacts Of Government Borrowing

Section: Chapter Questions

Problem 19CTQ: Explain how a shift from a government budget deficit to a budget surplus might affect the exchange...

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