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Rising expenditures will contribute to rising deficits

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The Budget

In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures, the budget surplus may increase? Under which conditions might this happen and what is the likelihood that rising expenditures will contribute to rising deficits?

Reference no: EM131523851

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