The key to understanding the effects of government borrowing is to consider how the government plans to spend the borrowed funds.

Question

Quizplus · Accepted Answer

The effects of government borrowing largely depend on how the borrowed funds are utilized. If the government invests in productive projects that stimulate economic growth, it can lead to positive outcomes. Conversely, if the funds are used inefficiently, it may not yield the intended benefits and can lead to negative economic impacts.

The Key to Understanding the Effects of Government Borrowing Is