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Budget Microphones for Recording Acoustic Guitars

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I don't have much of a budget but I want something better or rather more suited than the AT-3035 which I use for vocals. I hear good things about the SM-57 (my budget is about the cost of one, or $100) but not sure if that extends to Micing an acoustic guitar. I'd like to blend my pickup with it to get a nice mix of a sound.