Asked by
Jacob Stevens
on Nov 16, 2024Verified
Part of the argument against deficits is that they
A) increase interest rates and investment.
B) increase interest rates and decrease investment.
C) decrease interest rates and investment.
D) decrease interest rates and increase investment.
Deficits
The amount by which a government, company, or individual's spending exceeds its income over a particular period of time.
Interest Rates
The cost of borrowing money or the return on investments, typically expressed as a percentage of the principal amount.
Investment
Spending on business capital, residential capital, and inventories
- Comprehend the relationship between government deficits, interest rates, and investment.
Verified Answer
BS
Learning Objectives
- Comprehend the relationship between government deficits, interest rates, and investment.