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Governments Have Learned That A(n)

Question 79

Multiple Choice

Governments have learned that a(n)

A) increased budget deficit tends to reduce interest rates and increase investment,thus increasing the growth of the capital stock
B) reduced budget deficit tends to reduce interest rates and increase investment,thus increasing the growth of the capital stock
C) reduced budget deficit tends to increase interest rates and increase investment,thus increasing the growth of the capital stock
D) reduced budget deficit tends to increase interest rates and increase investment,thus reducing the growth of the capital stock
E) increased budget deficit tends to increase interest rates and increase investment,thus reducing the growth of the capital stock

Correct Answer: