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Other things equal, when the government runs a large budget deficit, it _________ national saving and thereby _________ capital formation and productivity growth. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases
Chapter 36, Problem 10(choose chapter or problem)
Other things equal, when the government runs a large budget deficit, it _________ national saving and thereby _________ capital formation and productivity growth.
a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases
Questions & Answers
QUESTION:
Other things equal, when the government runs a large budget deficit, it _________ national saving and thereby _________ capital formation and productivity growth.
a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases
ANSWER:Step 1 of 2
Saving:
Saving refers to a part of the income not used to consume goods and services—the savings classified into public savings and private savings. The sum of public and private savings is called national savings.