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Business, 27.07.2021 20:20 loyaltyandgood

If the U. S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then: higher interest rates will crowd out private investment. government borrowing is likely to crowd out private investment. an inflationary increase in the price level is a real danger. the central bank might react with an expansionary monetary policy.

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