What's the basis for arguing that deficits are likely to lead to lower living standards in the future?
A government deficit means that the government is dissaving. Unless the government's failure to save is offset by increased private saving, a government deficit is likely to be associated with lower national saving. Lower national saving means a lower capital stock, and hence lower living standards in the future.
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The economy of the northern colonies, in particular New England, was largely based on
(a) small-scale farming. (b) slave trade. (c) cotton production. (d) all of the above.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure when it hires 150 coal miners?
A. $35,000 B. $20,000 C. $10,000 D. $5,000
The observed change in the reserves of copper, lead, and zinc between 1960 and 1990 was most likely caused by
a. low prices discouraging exploration for new reserves. b. a slowdown in demand growth. c. high prices that stimulated exploration. d. the discovery of substitutes.
The expression "getting the most bang for your buck" is an illustration of the
A. marginal utility/total utility ratio. B. total utility/price ratio. C. marginal utility/price ratio. D. total utility/marginal utility ratio.