What happens when a government borrows domestically to increase spending?

a)There is a decrease in private investment.

b)There is an increase in private consumption.

c)There is a decrease in interest rates.

d)There is a decrease in savings.

2.What will be the effect of a decrease in the money supply?

1.decreased interest rates, reduced planned investment and lower GDP.

2.decreased interest rates, increased planned investment and higher GDP.

3,increased raise interest rates, reduced planned investment and lower GDP.

4.increased interest rates, increased planned investment and reduced GDP.