1.6 Which of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP). (b) A decrease in the repo rate. (c) An increase in the quantity of money available. (d) A decrease in the quantity of money available. Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation. (b) government spends less than is generated by taxation. (c) government spending is very high. (d) Government spends more than is generated by taxation.

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A:

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