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.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section18.5: Should The Government Balance Its Budget?

Problem 5QQ

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