In the long run, a higher government deficit does not affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A) lead to greater tax revenues.
B) reduce spending on privately provided goods and services.
C) reduce the price level.
D) increase the unemployment rate.
Question 2
The value of the real estate that a bank uses for its operations will be included in the bank's:
A) cash equivalents. B) reserves.
C) short-term borrowing. D) long-term investments.
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