Some argue that budget deficits will lead to reduced private spending because:
A) the g...
Business, 24.04.2020 01:03 michellen2020
Some argue that budget deficits will lead to reduced private spending because:
A) the government will purchase so many goods and services, creating shortages.
B) budget deficits will reduce interest rates on savings and decrease consumers' wealth.
C) consumers, anticipating paying higher taxes in the future, will reduce current consumption in order to save money to pay the future taxes.
D) the government will have to increase transfer payments in order to finance the deficit.
Answers: 1
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