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A Government Decides To Introduce A Essay

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when governments run budget deficits in order to stimulate an economy and reduce unemployment, there is a potential problem known as “crowding out”. to run a budget deficit, the government has to borrow money. this is done by selling government bonds, including treasury bills or treasury bonds. these are sold to financial institutions who then sell them on to people who want to increase their savings. essentially, the government is increas...

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