Which of the following does not reduce the potential burden of an increase in debt on future generations?
a. the growth rate of output is high
b. in response to increased debt, parents save more to leave their children larger bequests
c. budget deficits raise interest rates
d. All of the above are correct.
c
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The Federal Reserve System is organized into ________ Federal Reserve districts
A) 6 B) 10 C) 12 D) 15 E) 50
In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises?
A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF0. C) The supply of loanable funds curve would shift rightward to a curve such as SLF2. D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.