Economics · Public debt
Consider the following statements regarding the economic effects of public debt: (a) When people subscribe to government loans, their propensity to consume is curbed. (b) Due to public debt, inequality may increase where the rich become richer and the poor become poorer. Which of the statement/s given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1None of the above
- 2Only (b) is correct
- 3Only (a) is correct
- 4Both (a) and (b) are correct✓
Correct answer
Both (a) and (b) are correct
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