Suppose a government decides to significantly increase its borrowing through bond issuances to fund ambitious infrastructure projects aimed at stimulating economic growth. How might this surge in government bond supply impact the bond market, interest rates, and the broader economy? Discuss the potential consequences, both positive and negative, on economic development and stability.

Answer rating: 100% (QA)

Increasing government borrowing through bond issuances to fund infrastructure projects can significantly impact the bond market interest rates and the ... View the full answer