In the long run, a higher government budget deficit causes A) ...

[RYAN BANYAN]

In the long run, a higher government budget deficit causes
 
  A) a decrease in both private spending and equilibrium real GDP.
  B) an increase in both private spending and equilibrium real GDP.
  C) a decrease in private spending while equilibrium real GDP remains unchanged.
  D) no change in private spending but a decrease in equilibrium real GDP.

Question 2

One important factor that affects economic growth is
 
  A) gold reserves.
  B) the rate of saving.
  C) which political party is in power.
  D) the number of workers in heavy industry.

[todom5090]

Answer to Question 1

C

Answer to Question 2

B

[RYAN BANYAN]

Excellent

[fatboyy09]

TYSM