Author Question: A concern about crowding out caused by increased government borrowing is that: a. interest rates on ... (Read 44 times)

wenmo · **on:** Jun 30, 2018

A concern about crowding out caused by increased government borrowing is that:
a. interest rates on private borrowing fall.
b. lower rates of economic growth can result from a decline in business investment spending.
c. the federal government may default on its loans.
d. foreign lenders find it less attractive to help finance federal deficits.

Question 2

If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is:
a. fixed.
b. government-determined.
c. set by the value of gold.
d. floating.
e. improper.