Suppose a country had a smaller increase in debt in 2008 than it had in 2007.Then other things the same,we would expect

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If a country had a smaller increase in debt in 2008 than in 2007, it would indicate lower government borrowing in 2008 (compared to the previous year) and, therefore, less pressure on interest rates. Lower interest rates, in turn, would encourage greater investment in the economy. Therefore, we would expect lower interest rates and greater investment in 2008 than in 2007.

Suppose a Country Had a Smaller Increase in Debt in 2008