If an increase in government spending causes an increase in government borrowing, this could induce
A. an increase in interest rates, which would cause private domestic investment to rise.
B. an increase in interest rates but no effect on private domestic investment.
C. an increase in interest rates, which would cause private domestic investment to fall.
D. a decrease in interest rates, which would cause private domestic investment to rise.
Answer: C
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In which industry(ies) are firms price takers?
a. oligopolies b. monopolies c. perfect competition d. oligopolies and monopolies e. monopolistic competition
Which statement is false?
A. During the 19th century the main cash crops grown in the South were cotton, rice, sugar, and tobacco. B. The only real economic conflict between the North and the South before the Civil War was over slavery. C. It took most parts of the South about a century to recover economically from the effects of the Civil War. D. Southern agriculture developed very differently from agriculture in other regions of the nation.
In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)
A. normal good. B. complementary good. C. inferior good. D. luxury.
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the money supply is ________ billion
A) $10,000 B) $4000 C) $1400 D) $10,400