One mechanism through which increasing public debt may impact the ...

[RRMR]

One mechanism through which increasing public debt may impact the economy is that the resulting
 
  A) increased competition for funds increases interest rates and causes a reduction in investment.
  B) increased competition for funds decreases interest rates and causes an increase in investment.
  C) decreased competition for funds decreases interest rates and causes a reduction in investment.
  D) decreased competition for funds decreases interest rates and causes an increase in investment.

Question 2

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?
 
  A) The annual rate of growth of per capita real GDP will increase from 7.5 percent to 8 percent.
  B) The annual rate of growth of per capita real GDP will increase from -1.5 percent to -1 percent.
  C) The annual rate of growth of per capita real GDP will remain unchanged.
  D) The annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent.

[smrerig]

Answer to Question 1

A

Answer to Question 2

D

[RRMR]

Excellent

[bblaney]

TYSM