Assume an economy with a deficit response index of -.20. With a budget deficit of $200 billion, what would be the impact on the budget deficit if the economy were to expand by $100 billion? Assume that the government takes no action to change taxes or government spending.

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The Answer of Assume an economy with a deficit response index of -.20. With a budget deficit of $200 billion, what would be the impact on the budget deficit if the economy were to expand by $100 billion? Assume that the government takes no action to change taxes or government spending.

Assume an Economy with a Deficit Response Index of -