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In the long run, Select one: a. a larger budget surplus means a smaller capital stock b. a larger budget deficit means lower consumption spending c. lower investment spending means slower growth of the standard of living d. government spending has no effect on the budget deficit or surplus e. a larger budget deficit means a larger money supply

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In the long run,
Select one:
a. a larger budget surplus means a smaller capital stock
b. a larger budget deficit means lower consumption spending
c. lower investment spending means slower growth of the standard of living
d. government spending has no effect on the budget deficit or surplus
e. a larger budget deficit means a larger money supply

✅ Answers (1)

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Private answer
  • In the long run,
    c. lower investment spending means slower growth of the standard of living

Investment spending creates more jobs, and increases employment rate. A lower investment spending causes high unemployment rates in the long run, and and high budget deficit which is financed by high taxes

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Answered on June 24, 2020 3:05 pm

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