Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, which of the following is most likely?
A. reduced government borrowing to avoid crowding out private investment
B. difficulty managing public investment so it’s done in a cost effective way
C. government budgets will exactly shadow the rate of private investment
D. tax budgets increase without a corresponding drop in private investment
Answer:B
Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, which of the following is most likely?
A. reduced government borrowing to avoid crowding out private investment B. difficulty managing public investment so it’s done in a cost effective way C. government budgets will exactly shadow the rate of private investment D. tax budgets increase without a corresponding drop in private investment
Explanation: Type: Multiple Choice