Borrowing to finance the increases in government expenditures
A) reduces current private investment expenditures.
B) increases interest rates.
C) reduces growth in the nation's private capital stock.
D) all of the above.
D
You might also like to view...
Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
If two interdependent economies work independently pursuing the best interests of their own economies
A) both countries can end up worse than they planned because of international externalities. B) they will make other economies more vulnerable to international externalities. C) they will have to sacrifice their monetary autonomy to achieve their goals. D) both countries can end up worse than they planned because of the liquidity effect.
According to the law of supply, when the price of computer microprocessors rises Question 1 options:
A. the quantity of microprocessors produced increases. B. the number of sellers of microprocessors increases. C. the supply of microprocessors increases. D. the quantity of microprocessors produced decreases. E. computers become cheaper to purchase.
Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1Refer to Table 30.1. From 2015 to 2016 the real wage
A. rises. B. falls. C. stays the same. D. rises then falls.