Solved

The Opportunity Cost of the Debt Is the Change in the Mix

Question 136

True/False

The opportunity cost of the debt is the change in the mix of output that occurs when public sector spending crowds out private sector spending.
The opportunity cost is the most desired goods or services that are forgone in order to obtain something else.Crowding out causes an opportunity cost because the increased government spending results in the loss of private sector borrowing (and spending).

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents