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1. The federal government decides to pay for the transition to private social security accounts with a one-time $1 trillion bond issue. What will be

1. The federal government decides to pay for the transition to private social security accounts with a one-time $1 trillion bond issue. What will be the biggest concern to businesses relative to the "crowding out" effect?

  • shortage of investment due to new accounts

  • inflation resulting from more government purchases

  • higher interest rates due to the new government borrowing

  • a negative supply shock

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