Lerner's view on debt financing is
A. Future generations bear a burden of external debt.
B. Burden of debt can be transferred across generations.
C. Internal debt creates no burden for the future generations.
D. Government debt crowds-out the available funds for private sector.
C. Internal debt creates no burden for the future generations.
You might also like to view...
In the Solow growth model, if the level of investment is less than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases B) greater than zero; decreases C) less than zero; increases D) less than zero; decreases
Economically speaking, the design of Medicare
A) encourages the consumption of medical services. B) discourages the consumption of medical services. C) helps to decrease the cost of care to non-Medicare patients. D) discourages the provision of medical services.
Suppose that an individual has a constant MRS of shoes for sneakers of 4:3 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes). Then, if sneakers and shoes are equally costly, he or she will:
a. buy only sneakers. b. buy only shoes. c. spend his or her income equally on sneakers and shoes. d. wear sneakers only 3/4 of the time.
The crowding-in effect results from
a. a low MPS. b. induced investment. c. induced consumption. d. rising interest rates.