How Would Budget Deficit Reduction Through Reduced Government Spending Affect

question 97

Multiple Choice

How would budget deficit reduction through reduced government spending affect economic growth?

• A) It would not affect economic growth because the budget deficit and economic growth are unrelated.
• B) It would stimulate economic growth.
• C) It would hinder economic growth.
• D) It would not affect economic growth because the positive and negative effects of deficit reduction would cancel each other out.
• E) It depends on which government programs are cut to achieve deficit reduction.

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