Long-run consequences of large sustained budget deficits

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Reference no: EM13836497

Which of the following is not one of the long-run consequences of large sustained budget deficits?

a. Private investment becomes crowded out

b. the value of a nation's currency increases, making it harder to sell exports to other nations

c. debt increases, and so does the percentage of GDP that has to be spent on interest payments

d. high rates of inflation as consumer lose confidence in a nation's currency

Reference no: EM13836497

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