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As a result of government borrowing to cover deficits, citizens increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes

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As a result of government borrowing to cover deficits, citizens increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes. Then it follows that increased government borrowing will......... a) reduce private investment. b) increase private investment. c) increase interest rates. d) both (a) and (c) Ο Α ?? ? OD Q19 5 point 19-Which of the following items would fall under government's recurrent expenditure? a)debt servicing b)pensions c)goods and services d) all of the above