In comparison to a government that runs a balanced budget, when the government runs a budget deficit
A) the equilibrium interest rate will fall.
B) business investment will fall.
C) household savings will fall.
D) none of the above
Answer: B
Economics
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When it comes to unlikely but potentially deadly events, individuals
A) are very good at estimating risks. B) are not very good at estimating risks. C) are better than large corporations at estimating risks. D) do not even attempt to estimate risks.
Economics
A consol bond promises to pay $1000 each year, forever, starting next year. If the nominal interest rate is 5%, the present discounted value of this consol is
A) $900.00. B) $995.00. C) $2,500.00. D) $20,000.00. E) $25,000.00.
Economics