Government expenditure is believed to decrease investment primarily by causing a rise in which of the following?

Choose the correct answer

Explanation

Increased government spending can lead to higher borrowing costs, or interest rates, which tends to discourage private investment. The other options such as incomes, foreign investments, imports, and taxes do not directly explain the reduction in investment caused by government expenditure.

Government expenditure is believed to decrease inves… — Money, Interest Rates And Output | PakQuizHub