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).
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The main way in which the Northwest Ordinance increases sectionalism in the United States was that it offered lots of new territory in which people had to determine where to be free or slave states.
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<span>According to Hughes, for many whites who went to Harlem, the blacks and their culture were viewed as something to be admired and respected. </span>
