Which of the following is a part of the argument against deficits?
A) They increase interest rates and investment.
B) They increase interest rates and decrease investment.
C) They decrease interest rates and investment.
D) They decrease interest rates and increase investment.

Question

Quizplus · Accepted Answer

According to the argument against deficits, they increase interest rates because the government is borrowing more money, leading to a decrease in investment. This can lead to crowding out, where private investment is displaced by government borrowing. Therefore, the correct choice is B.

Which of the Following Is a Part of the Argument