Multiple Choice
Which statement is FALSE?
A) When there is an increase in the government budget deficit, the total amount of borrowing falls.
B) When there is an increase in private savings, the interest rate decreases.
C) When there is an increase in the government budget deficit, private investment is crowded out.
D) When there is an increase in private savings, the total amount of borrowing increases.
Correct Answer:
Verified
Correct Answer:
Verified
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