Borrowing to pay for long-lived capital expenditures makes sense as
A) the benefits are received in the current year so the burden of paying for them should be spread over many years.
B) the benefits are received over many years so the burden of paying for them should be spread over many years.
C) the benefits are received in the current year so the burden of paying for them should be paid in the current year.
D) the benefits are received over many years so the burden of paying for them should be paid in the current year.
Answer: B
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a. True b. False
By holding so much in foreign currency reserves, China is risking
A. A default on its bonds. B. Recession. C. Inflation. D. Deflation.
The Fed’s tools of monetary policy are
A. government expenditures, interest rates, and taxation. B. open-market operations, lending to banks, reserve requirements, and paying interest on reserves. C. the money supply, government purchases, and taxation. D. none of these.
Revenue sharing tries to induce worker effort by linking:
A. worker output to revenues. B. worker compensation to revenues. C. worker output to profits. D. worker compensation to profits.