Multiple Choice
One mechanism through which increasing public debt may impact the economy is that the resulting
A) increased competition for funds increases interest rates and causes a reduction in investment.
B) increased competition for funds decreases interest rates and causes an increase in investment.
C) decreased competition for funds decreases interest rates and causes a reduction in investment.
D) decreased competition for funds decreases interest rates and causes an increase in investment.
Correct Answer:
Verified
Correct Answer:
Verified
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Q7: Net public debt is the<br>A) difference between
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Q13: Gross public debt is the amount of
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Q16: What is TRUE about government budget deficits