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In our macro Circular Flow, the Government is initially choosing to borrow _____________ billion dollars..

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Answer:

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Step-by-step explanation:

Initially the Government does not borrow or ideally does not want to borrow any money in the macro Circular Flow. The reason is that the Government can finance or inject it with their own spending in the form of investment, government purchases, and enhancing exports opportunities and that they would be focused on that rather than borrowing initially. Also, the circular flow loses money if imports are more than exports or due to taxation or when money is taken out for savings rather than further investment.

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