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Reduce the purchasing power of household wealth and reduce consumption
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- bThe long-run effect of higher government budget deficits on the equilibrium annual flow of real GDP is zero. Who, therefore, benefits in the long run from higher government deficits?Those who benefit in the long run from higher budget deficits areA.those who receive the larger share of the annual flow of real GDP to government-provided goods and services—that is, those to whom these goods and services are not redistributed.B.those who receive the larger share of the annual flow of real GDP to government-provided goods and services—that is, those to whom these goods and services are redistributed.C.those who receive the smaller share of the annual flow of real GDP to government-provided goods and services—that is, those to whom these goods and services are redistributed.D.those who receive the smaller share of the annual flow of real GDP to government-provided goods and services—that is, those to whom these goods and services are not redistributed
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