Question: 11. Trace the cause-and-effect chain through which financing and refinancing of the public debt might affect real interest rates, private investment, the stock of capital,


11. Trace the cause-and-effect chain through which financing and refinancing of the public debt might affect real interest rates, private investment, the stock of capital, and economic growth.

How might investment in public capital and complementarities between public capital and private capital alter the outcome of the cause-effect chain? LO13.6

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