Theory suggests that higher deficits lead to higher interest rates and less capital investment. Which of the following is consistent with recent observations? a.No studies have ever found a relationship between long-term deficits and interest rates. b.The government debt of the United States is no longer considered safe. c.Large recent increases in public debt have not resulted in higher interest rates in the United States. d.Large recent increases in public debt have resulted an increase in interest rates in the United States.

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