Borrowing to finance the increases in government expenditures ...

[nmorano1]

Borrowing to finance the increases in government expenditures
 
  A) reduces current private investment expenditures.
  B) increases interest rates.
  C) reduces growth in the nation's private capital stock.
  D) all of the above.

Question 2

Refer to the above figure. Which of the following points indicates an inefficient use of resources?
 
  A) a
  B) d
  C) e
  D) More information is needed to answer the question.

[dmurph1496]

Answer to Question 1

D

Answer to Question 2

A

[nmorano1]

Excellent

[Alyson.hiatt@yahoo.com]

Gracias!