Reducing the budget deficit by cutting government spending, Ask an Expert

Economics

Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than private investment. B. decrease income if interest rates rise enough and private investment is more productive than government investment. C. increase income if interest rates fall enough and private investment is more productive than government spending. D. decrease income if interest rates fall too much and private investment is more productive than government investment.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9606389

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