A macroeconomist is likely to be most concerned about the increase of public debt when:

Question

Answer

The government borrows money from banks to increase social security payments

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The government borrows money from the public to fund new infrastructure projects

Answer

Both a and d are correct.

Answer

If real interest rates are relatively low

Answer

The government borrows money to fund spending during a recession, and then runs a budget surplus in an expansionary economic period

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