If Deficit Spending Does Not Contribute to Public Investment and Crowds

question 8

Multiple Choice

If deficit spending does not contribute to public investment and crowds out private investment,then

• A)The rate of economic growth will decline,ceteris paribus.
• B)The current generation will bear the total burden of the debt.
• C)Future productive capacity will be enhanced.
• D)The opportunity cost of the debt will be minimized.

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