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Chapter 26/Saving, Investment, and the Financial System 475
c. By the late 1990s, the debt-to-GDP ratio began declining due to budget surpluses.
d. The debt-to-GDP ratio began rising again during the first few years of the George W.
Bush presidency. The causes have been threefold: tax cuts, a recession, and an increase
in government spending for the war on terrorism.
SOLUTIONS TO TEXT PROBLEMS:
Quick Quizzes
1. A stock is
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