When the federal government borrows money

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Reference no: EM131388864

1. If one state is suffering from acid rain as a result of sulfur dioxide emissions from the industries in a neighboring state, then:

a) the individual states can easily reach a solution to the problem.

b) the problem is best addressed through federal regulation.

c) state courts can provide adequate remedies.

d) the acid rain ceases to be an externality.

2. When the federal government borrows money, the resulting ______ in interest rates will lead private investment to ______.

A) decrease; rise

B) decrease; fall

C) increase; rise

D) increase; fall

Reference no: EM131388864

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