A growing government budget deficit and national debt reduces economic growth because
A) it insures that future generations will have to pay the debt.
B) it reduces public investment.
C) it reduces household saving.
D) it diverts private savings from the financing of private investment.
D
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The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A) Economic growth can benefit the environment. B) Environmental damage is a regrettable but necessary side effect of economic growth. C) The condition of the environment will be better in slower-growing countries. D) The way to reduce pollution is to educate people about its effects.
Who argued that the economy should be left to itself to close a recessionary gap?
a. John F. Kennedy b. John Maynard Keynes c. Mercantilists d. Classical economists e. Socialists