An increase in government borrowing can:
A. allow private investment to expand.
B. crowd out private investment in physical capital.
C. increase the incentive to invest in technology.
D. cause a substantial decrease in interest rates.
Answer:B
An increase in government borrowing can:
A. allow private investment to expand. B. crowd out private investment in physical capital. C. increase the incentive to invest in technology. D. cause a substantial decrease in interest rates.
Explanation: Type: Multiple Choice