A government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment.
A) increases; decreases; crowds out
B) increases; increases; increases
C) decreases; increases; increases
D) decreases; increases; crowds out
E) increases; increases; crowds out
Correct Answer:
Verified
Q106: When government saving is negative,
A)the real interest
Q107: If net taxes exceed government expenditures, the
Q108: Use the table below to answer the
Q109: When the inflation rate is zero, the
A)real
Q110: Use the table below to answer the
Q112: Which of the following explains why the
Q113: When a government has a budget surplus,
Q114: The tendency for private saving to increase
Q115: The crowding-out effect refers to
A)government spending crowding
Q116: If China's government increases its budget surplus,
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