Which of the following statements accurately describe the effect of the increase in government borrowing? Check all that apply. National saving decreases by less than $20 billion. Investment increases by less than $20 billion. Public saving decreases by exactly $20 billion. Private saving increases by less than $20 billion. The more elastic the supply of loanable funds, the is the change in national saving as a result of the increase in government borrowing. The more elastic the demand for loanable funds, the the change in national saving as a result of the increase in government borrowing. Suppose households believe that greater government borrowing today implies higher taxes pay off the government debt in the future. This belief would cause people to save today, which would would private saving and the effect of the reduction in public saving on the market for loanable funds. the supply of loanable funds. This
Which of the following statements accurately describe the effect of the increase in government borrowing? Check all that apply. National saving decreases by less than $20 billion. Investment increases by less than $20 billion. Public saving decreases by exactly $20 billion. Private saving increases by less than $20 billion. The more elastic the supply of loanable funds, the is the change in national saving as a result of the increase in government borrowing. The more elastic the demand for loanable funds, the the change in national saving as a result of the increase in government borrowing. Suppose households believe that greater government borrowing today implies higher taxes pay off the government debt in the future. This belief would cause people to save today, which would would private saving and the effect of the reduction in public saving on the market for loanable funds. the supply of loanable funds. This
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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