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Country A is a small country, with very low per capita GDP, running a large fiscal deficit. The government has substantially increased its debt burden
Country A is a small country, with very low per capita GDP, running a large fiscal deficit. The government has substantially increased its debt burden over the last 10 years, and, as a result, investment flowing into the private sector has declined. This situation best describes: A the Fisher effect. B Ricardian equivalence. C the crowding out effect
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Economics
Authors: John Sloman, Alison Wride
7th edition
978-027372130, 273721305, 978-0273721307
