contestada

Which of the following occurs when investment is crowded out by government spending? a) interest rates fall b) the amount of borrowing by the government falls c) the amount of government debt rises d) consumption increases

Respuesta :

Yormex

The following occurs when investment is crowded out by government spending: option C.

  • the amount of government debt rises

What makes the government debt rise?

The government debt level of a country is what the federal government of such country owes its creditors. When the government almost always spends more perhaps to invest than it realizes through taxes and other revenues, the government debt continues to rise.

Therefore, the implication of excessive investment or spending more that the expected amount of revenue could result to national debt.

learn more about national debt: https://brainly.com/question/24171577

#SPJ1

Otras preguntas