In recent years the federal and state governments have reduc

In recent years, the federal and state governments have reduced the percentage of higher education costs that they will pay, thus increasing the percentage of costs borne by students and their families. What is the likely effect on the future rate of growth in the United States?

Solution

Answer :- Reduction in government expenditure will reduce aggregate demand and thus solve the problem of excess demand in an economy. Accordingly, The future rate of growth will increase in the country.