wo main macroeconomic impacts of a large government debt are Group of answer choices a. crowding-out of private investment and reduction of government spending b. lower economic growth and a decrease in public investment c. lower interest rates and a decrease in public investment d. future increase in distortive taxes and a reduction of government spending

wo main macroeconomic impacts of a large government debt are Group of answer choices a. crowding-out of private investment and reduction of government spending b. lower economic growth and a decrease in public investment c. lower interest rates and a decrease in public investment d. future increase in distortive taxes and a reduction of government spending

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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Question

Two main macroeconomic impacts of a large government debt are

Group of answer choices

a. crowding-out of private investment and reduction of government spending

b. lower economic growth and a decrease in public investment

c. lower interest rates and a decrease in public investment

d. future increase in distortive taxes and a reduction of government spending

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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