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In the Standard View, Fiscal Debts and Deficits

Question 39

Multiple Choice

In the standard view, fiscal debts and deficits


A) in the long run crowd out investment and shift the economy to a less favorable long-run steady-state growth path.
B) in the long run crowd out consumption and shift the economy to a less favorable long-run steady-state growth path.
C) in the long run crowd out savings and shift the economy to a less favorable long-run steady-state growth path.
D) in the long run crowd in investment and shift the economy to a more favorable long-run steady-state growth path.

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