Question

Other things equal, when the government runs a large budget deficit, it _ national saving and thereby _ capital formation and productivity growth. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases

Name: other things equal when the government runs a large budget deficit it national saving and thereby capital formation and productivity growth a increases increases b increases decreases
Uploaded: 2022-12-07T17:32:37-08:00
Duration: 2 min 35 s
Channel: Andrew Davis
Description: other things equal when the government runs a large budget deficit it national saving and thereby capital formation and productivity growth a increases increases b increases decreases

          Other things equal, when the government runs a large budget deficit, it _______ national saving and thereby _______ capital formation and productivity growth.

a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases

Added by Hyungyu L.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Andrew Davis

12/07/2022

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Step 1: Budget deficits reduce national savings. Show more…

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Other things equal, when the government runs a large budget deficit, it _______ national saving and thereby _______ capital formation and productivity growth. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases