If the government wants to borrow money to build new highways;then the
A)interest rate will be higher.
B)quantity of funds available in the market will increase.
C)private investment will decrease.
D)All of the above.

Question

Quizplus · Accepted Answer

When the government borrows money, it typically does so by issuing bonds, which increases the demand for funds. This can lead to higher interest rates as lenders demand more for their loans. The increased competition for funds can crowd out private investment, as businesses may find it more expensive or difficult to borrow money. Thus, all of the options provided are potential consequences of government borrowing for new highways.

If the Government Wants to Borrow Money to Build New