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).
Answer:
I believe that the answer for this is C but I'm not sure if that's correct
Historians Believe the compas came from Asia
The Constitution was drafted in 1787, after the American Revolution ended. What document preceded the Constitution in outlining the powers of the US government? the Declaration of Independence.
