If other factors are held constant and the federal government increases its borrowing from the private sector
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Question:
If other factors are held constant and the federal government increases its borrowing from the private sector in order to pay for an increased budget deficit, the result will be
A.
an increase in net exports.
B.
a cancelling of the crowding out effect.
C.
an overall increase in the interest rate.
D.
an overall decrease in the interest rate.
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