When There Are Credit Market Imperfections, an Increase in Government

question 10

Multiple Choice

When there are credit market imperfections, an increase in government debt may be advantageous because it

• A) discourages credit-constrained consumers from borrowing too much.
• B) increases the welfare of credit-constrained consumers.
• C) eliminates the problems that cause credit market imperfections.
• D) encourages more private saving.
• E) borrows at higher interest rates than consumers.

---

Definitions:

Positive Nitrogen

A condition indicating that the intake of nitrogen (typically from proteins) exceeds its loss from the body, often associated with growth or healing.

Semi-Fowler's

A position where a patient is partially seated, with the head of the bed raised to about 30-45 degrees, often used to improve comfort and breathing.

Chin Tuck

An exercise or movement where the chin is drawn downwards towards the chest, often used to improve swallowing or posture.

Gag Reflex

An involuntary contraction of the back of the throat evoked by a stimulus, such as touching the roof of the mouth, which prevents choking.