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An Increase in a Budget Deficit Financed by Borrowing Can

question 16

True/False

An increase in a budget deficit financed by borrowing can increase interest rates and reduce investment spending thereby creating lower rates of economic growth.


Definitions:

Infrastructure

Basic systems of communication, transportation, and energy facilities in a country.

Political Climate

The overall mood, attitudes, feelings, and conditions that currently exist within a political system or societal structure.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feelings, etc., to someone else.

Foreign Corrupt Practices Act

Federal law that prohibits U.S. citizens and companies from bribing foreign officials to win or continue business.

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