In general, the more the government borrows, interest rates should [rise, fall, remain unchanged]. In reality, as the government has borrowed more interest rates have remained unchanged]. [increased, decreased,
In general, the more the government borrows, interest rates should [rise, fall, remain unchanged]. In reality, as the government has borrowed more interest rates have remained unchanged]. [increased, decreased,
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 5CQ
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Question
![In general, the more the government borrows,
interest rates should
[rise,
fall, remain unchanged]. In reality, as the
government has borrowed more interest rates
have
[increased, decreased,
remained unchanged].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ee27961-2d98-4069-bd8e-4c3d99346202%2F602becc6-58d5-4d6a-8f90-9e1611188047%2Fbsq4lv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In general, the more the government borrows,
interest rates should
[rise,
fall, remain unchanged]. In reality, as the
government has borrowed more interest rates
have
[increased, decreased,
remained unchanged].
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