10. Reducing the budget deficit by cutting government spending could conceivably

Question

10. Reducing the budget deficit by cutting government spending could conceivably: A) increase income if interest rates fall enough and private investment is more productive than government spending. B) increase income if interest rates rise enough and government spending is more productive than private investment. C) decrease income if interest rates fall too much and private investment is more productive than government investment. D) decrease income if interest rates rise enough and private investment is more productive than government investment.
Explain:

Explanation / Answer

D. decrease income if interest rates fall too much and private investment is more productive than government investment.

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