Which of the following would not be an argument that government debt imposes a burden on future generations?
A. Lump-sum taxes in the future may be raised to pay higher real interest costs.
B. Higher government deficits resulting from increased purchases may reduce savings, causing investment to fall.
C. Higher taxes in the future to repay government debt will transfer resources from the poor to the rich.
D. Higher taxes in the future could increase the average cost of distortions to the economy created by taxes.
Answer: A
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Centrally planned economies do not use the price system for anything
a. True b. False Indicate whether the statement is true or false
Which of the following is a predictable, secondary effect of a sharp increase in gasoline prices?
a. Producers will increase the production of fuel-efficient cars. b. The federal government will place a quota on the number of fuel-efficient cars for sale, thus "forcing" consumers to purchase the gas guzzling vehicles. c. the termination of research on the cost-effectiveness of alternative fuels to power automobiles. d. Producers will increase the production of gas guzzling vehicles.
Which of these events could permanently shift a individual's demand curve for umbrellas to the right?
a) He buys a car so her no longer needs to walk to and wait at a bus stop every morning to get to work b) He moves from a desert community to a rainy city by the ocean c) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China d) Weather forecasters predict that a major hurricane will hit his city in the following week
The political problems associated with fixing the CPI are that
A. benefits to the poor would rise. B. Social Security benefits would fall. C. personal income taxes would fall. D. Social Security taxes would rise.