Ask Question
21 January, 05:30

Assume that the government finances its spending by borrowing from the public. If the government increases deficit spending, the price of previously issued bonds and the real interest rate will change in which of the following ways?

Price of Bonds Real Interest Rate

a. decrease, decrease

b. decrease, increase

c. increase, decrease

d. increase, no change

e. increase, increase

+1
Answers (1)
  1. 21 January, 06:52
    0
    Option B ...

    decrease, increase
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that the government finances its spending by borrowing from the public. If the government increases deficit spending, the price of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers