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How does affect budget balances

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Reference no: EM132600549

During a recession, government often pursues expansionary fiscal policy. How does this affect budget balances?

A. Deficits decrease as spending rises and revenues fall.

B. Surpluses decrease as spending falls and revenues fall.

C. Deficits increase as spending rises and revenues fall.

D. Surpluses increase as spending rises and revenues fall.

Reference no: EM132600549

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