grtrerefb1566 grtrerefb1566

19-12-2022
Business

Answered

An increase in government spending financed by borrowing will result in which of the following? a. Private savings will decrease in the short run.
b. The real interest rate will decrease in the short run. c. Interest-sensitive private sector spending will increase in the short run. d. Potential real output will increase in the long run. e. The rate of physical capital accumulation will decrease in the long run.

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