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Question Practice

What is one potential effect of government borrowing on private investment?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Government Budget And The Economy
Question Bank

What is one potential effect o...

Single Answer MCQ
Q-00089154

What is one potential effect of government borrowing on private investment?

1

It can stimulate increased consumer spending.

2

It can lead to a decrease in available savings for private investment.

3

It guarantees increased business loans.

4

It has no impact on private sector investment.

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