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.
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
Problem 13QA
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you