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Explain whether the government should use the surplus to retire government debt, provide a tax cut or leave the surplus revenue in a fund.

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1. Suppose a government runs a contractionary fiscal policy in order to moderate the effects of a mining boom. This results in a budget surplus.Explain whether the government should use the surplus to retire government debt, provide a tax cut or leave the surplus revenue in a fund.2. Explain how the banking system contributes to […]

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