According to the Traditional (Crowding-Out)view,budget Deficits Will

question 32

Multiple Choice

According to the traditional (crowding-out) view,budget deficits will

• A)reduce interest rates.
• B)increase interest rates and retard private investment.
• C)reduce the investments of foreigners in the United States.
• D)increase the capital stock available to future generations.

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Definitions:

Future Studies

An interdisciplinary field that seeks to anticipate and analyze possible, probable, and preferable futures.

Scientific Hypothesis

A testable prediction or explanation for a specific phenomenon, based on observation, reasoning, or existing scientific knowledge, serving as a starting point for further investigation.

Disproved

Shown to be false or incorrect through evidence or logical argument.

Proved

Demonstrated to be true or established with evidence.