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Answer to Question #89602 in Macroeconomics for JULIE ABANA
Question #89602
Can a nation fund its investments at a level higher than that currently provided by its
income? Explain
income? Explain
Expert's answer
Yes. A nation can fund its investment at a higher level than its income by providing government bonds, Treasury bills and notes. The government pays interest rates to those who purchase the bonds giving them a return on their investment
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