A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits
a. discourage consumption and therefore lead to production cutbacks.
b. lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople.
c. discourage investment and therefore may reduce the growth of the nation's capital stock.
d. discourage foreign investment and therefore limit employment opportunities.
c
Economics
You might also like to view...
In the long run, firms in a competitive market make zero economic profit. This induces most firms to leave the industry
Indicate whether the statement is true or false
Economics
Technically speaking, maximizing profit means finding the maximum difference between
a. TR and TC b. MR and MC c. price and ATC d. price and AR e. ATC and MC
Economics