Question 14 (1 point) A possible problem of government physical investment is A)

Question

Question 14 (1 point) A possible problem of government physical investment is A) it is too often made for only political reasons B) it is never economically efficient C) it is financed by deficit spending D) it is not the role of government to make investments Save Question 15 (1 point) When the Federal deficit is so large and the borrowing is so great that private investment can not find sufficient financial capital to make appropriate investments economist refer to this as phenomenom A) Finacial Crisis B) Invisible hand C) Crowding out D) Socialism ved 27

Explanation / Answer

a) "C"

It is financed by deficit spending. deficit spending is the government spending more than their income i.e. fro borrowing this increase the interest rates, inflation, and income in the economy.

b) "C"

Crowding out. Crowding out is when the government borrowing increases the interest rates and there are insufficient funds for the private sector in the economy.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.