A Concern About Crowding Out Caused by Increased Government Borrowing

question 42

Multiple Choice

A concern about crowding out caused by increased government borrowing is that:

• A) interest rates on private borrowing fall.
• B) lower rates of economic growth can result from a decline in business investment spending.
• C) the federal government may default on its loans.
• D) foreign lenders find it less attractive to help finance federal deficits.

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Definitions:

On-The-Job Training

On-the-job training refers to hands-on training provided to employees at the workplace while they are performing their actual job tasks, allowing them to learn by doing.

Principal Shortcoming

The main or most significant deficiency or weakness in a system, plan, or individual.

Development

A process of growth, progress, or evolution in various contexts such as technology, society, economy, or personal skills.

Department Manager

A person who oversees a specific department within an organization, managing its operations and employees.