If in order to sell its bonds the government raises interest rates on the bonds it offers, financing government spending by public debt, it
a. may end up crowding out private investment and slowing economic growth in the private sector
b. may end up crowding out public investment and increasing economic growth in the private sector
c. may slow down inflation and maintain economic growth
d. makes it cheaper for private industry to finance its own investment
e. will convert deficits to surpluses but at the expense of stable prices
A
You might also like to view...
Assume that an individual spends his income on sweaters and shirts. If the price of a sweater increases:
A) the opportunity cost of buying sweaters increases. B) the opportunity cost of buying sweaters decreases. C) the opportunity cost of buying shirts increases. D) There is no change in the opportunity cost of consuming either good.
Explain what the principal-agent problem is, and explain evidence of its existence in hospitals in the United States
What will be an ideal response?