The competition between the public and the private sectors results in huge deficits, eventually increasing interest rates.

Question

Quizplus · Accepted Answer

When both the public and private sectors compete for funds, it decreases the supply of available funds. This eventually results in an increase in interest rates to balance the supply and demand for funds. This increase in interest rates can lead to larger deficits for both sectors.

The Competition Between the Public and the Private Sectors Results