Which of the Following Statements About Government Borrowing Is Not

Multiple Choice

Which of the following statements about government borrowing is not true?

A) It provides the government the ability to maintain spending levels during economic downturns.
B) "Crowding out" of private investments is a major opportunity cost of government borrowing.
C) Its opportunity cost is likely to be quite high during an economic downturn.
D) A bigger budget deficit will result in a bigger amount of government borrowing.