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A result of budget deficits is that governments have to borrow more, sometimes resulting in: a. Top of Form increasing interest costs. b. decreasing interest costs. C, increased foreign borrowing. d, crowding out the private sector for capital. All other things remaining the same, which one of the following events would directly increase the size of the UK's national debt? An increase in A. mortgage borrowing from UK banks. B. overseas lending to UK firms. C. the UK's current account deficit. D. the UK government's budget deficit.

A result of budget deficits is that governments have to borrow more, sometimes resulting in: a. Top of Form increasing interest costs. b. decreasing interest costs. C, increased foreign borrowing. d, crowding out the private sector for capital. All other things remaining the same, which one of the following events would directly increase the size of the UK's national debt? An increase in A. mortgage borrowing from UK banks. B. overseas lending to UK firms. C. the UK's current account deficit. D. the UK government's budget deficit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A result of budget deficits is that governments have to borrow more, sometimes resulting in: a. Top of Form increasing interest costs. b. decreasing interest costs. C, increased foreign borrowing. d, crowding out the private sector for capital. All other things remaining the same, which one of the following events would directly increase the size of the UK's national debt? An increase in A. mortgage borrowing from UK banks. B. overseas lending to UK firms. C. the UK's current account deficit. D. the UK government's budget deficit.
Transcribed Image Text:A result of budget deficits is that governments have to borrow more, sometimes resulting in: a. Top of Form increasing interest costs. b. decreasing interest costs. C, increased foreign borrowing. d, crowding out the private sector for capital. All other things remaining the same, which one of the following events would directly increase the size of the UK's national debt? An increase in A. mortgage borrowing from UK banks. B. overseas lending to UK firms. C. the UK's current account deficit. D. the UK government's budget deficit.
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