The more money the Canadian government borrows (by issuing savings bonds), the ________ money is available for private borrowing and investment that increases ________.

Question

Quizplus · Accepted Answer

When the government borrows more money, it absorbs a larger share of the available lending resources, leaving less money available for private sector borrowing and investment. This can lead to a decrease in productivity because there is less investment in the private sector, which is often the source of productivity improvements.

The More Money the Canadian Government Borrows (By Issuing Savings