True of gold mine for their country
The stock market crash in 1929 and banks failures
Divisions within the christian religion were initiated by Martin Luther during the 1500s, since it was Luther who believed that the Catholic Church had become corrupt--both morally and financially. He began the religion of Protestantism.
Answer:
This borrowing may have a negative impact by crowding out private investment.
Explanation:
When the government goest into deficit spending to stimulate the economy in times when the economy is slowing down, what happens is that the government now demands more loanable funds: it demands a higher proportion of the savings in the economy in the form of government bonds.
This higher government demand for loanable funds crowds out private investment for two reasons:
- It raises the interest rate, making private investment more expensive.
- It reduces the amount of loanable funds available for the private sector (because it takes over a larger share of them).
