When ________ hold(s), if the present value of government is held constant, budget deficits will not crowd out investment.

Question

Quizplus · Accepted Answer

None of these options directly relate to a situation where budget deficits do not crowd out investment if the present value of government spending is held constant. Crowding out typically refers to government borrowing leading to higher interest rates, which in turn can reduce private investment. The options provided do not inherently address the relationship between constant present value of government spending and the avoidance of investment crowding out.

When ________ Hold(s), If the Present Value of Government Is