The Committee for a Responsible Federal Budget in the U.S. undertook an analysis of the "Build Back Better" spending plans,which included infrastructure spending and spending on social programs, during the the pandemic during the summer of 2021. They estimated that proposed expenditures could require at least $1 trillion of borrowing in the next year as well as another $2.9 trillion of borrowing over the next decade. Assume that the demand for investment and supply of savings/funds are elastic.

Based on the information provided above and the economic models you've seen in the course, indicate whether the following the is true or false.

The increase in borrowing would increase the market interest rate.

The increase in government infrastructure spending would displace private investment.

The increase in government spending would increase prices.