Borrowing to finance the increases in government expenditures
A. reduces growth in the nation's private capital stock.
B. reduces current private investment expenditures.
C. increases interest rates.
D. all of these.
Answer: D
You might also like to view...
Refer to the figure below. What is the price elasticity of supply at point A? 
A. 2 B. 4 C. 1/2 D. 1
The fundamental reason why most supply curves are upward sloping is that
A) consumers substitute lower-priced goods for higher-priced goods. B) the quantity supplied increases as more firms enter the market. C) a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated. D) higher production raises the opportunity costs of production and so price must rise to induce more output.
Individuals on opposite sides of the political spectrum typically voice opposite viewpoints on universal access and universal coverage. What is the difference between the two concepts?
a. Republicans typically support universal coverage; Democrats support universal access. b. Universal access guarantees that everyone that wants it has health insurance. c. Universal access usually requires mandatory participation; universal coverage is a voluntary system. d. Universal access means that everyone has access to medical treatment from the provider of his or her choice. e. Universal coverage guarantees that everyone will have access to health insurance coverage.
The 2001 amendment to the Commodity Credit Corporation (CCC) loan program tends to
A. Reduce downward price swings. B. Intensify upward price swings. C. Reduce upward price swings. D. aggravate downward price swings.