Note AcademyNote Academy
Start

Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 24

9708Fiscal policy

What is the most likely consequence when there is an increase in the national debt?

  1. Athe creation of additional money
  2. Ba current account deficit on the balance of payments
  3. Ca surplus in the government's budget
  4. Dthe crowding out of private sector investment

As printed in the paper

Show the answer

Correct answer: D. the crowding out of private sector investment

Sit this whole paper →More on Fiscal policy

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.