Explain actions purpose and benefits of this borrowing move

Assignment Help Macroeconomics

Reference no: EM133550259

Discussion Post: Government Borrowing

Sections 3 and 4 introduce some side effects of government borrowing. Some negative side effects include concern about inflation and higher interest rates in the private market, while positive side effects include the ability for government spending, which could lead to investment within the country and economic growth.

Task

Question A. Provide a situation where the government may decide to borrow money.
Question B. Explain this action's purpose and the benefits of this borrowing move.

Reference no: EM133550259

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