According to the traditional view of deficit financing,an increase in debt-financed government expenditure
A) causes interest rates to rise,private investment to fall,net exports to fall,and an inflow of foreign capital.
B) causes interest rates to rise,private investment to fall,net exports to fall,and an outflow of domestic capital.
C) causes interest rates to fall,private investment to rise,net exports to increase,and an inflow of foreign capital.
D) causes interest rates to rise,private investment to fall,net exports to fall,and an outflow of domestic capital
Correct Answer:
Verified
Q66: The external debt is the portion of
Q67: The table below shows the revenues and
Q68: The difference between the federal budget deficit
Q69: The idea that a large public debt
Q73: Domestically financed deficit spending shifts the cost
Q75: Why are the bonds held by the
Q76: Widespread acceptance of the Keynesian theory of
Q122: If a country with a large government
Q133: As the large baby-boom generation moves into
Q137: As the outstanding debt of a nation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents