Incomes policies of the federal government include:

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.

When borrowing is done in a foreign currency and lending is done in the domestic currency, what event creates a downturn in the economy?

a. a deprecation of its exchange rate b. an appreciation of its exchange rate c. an appreciation of its interest rate d. a depreciation of its interest rate