When government debt is financed internally, future generations will
a. inherit a higher tax liability without additional interest income.
b. inherit neither higher taxes nor additional interest income.
c. inherit both higher taxes and additional interest income.
d. receive lower interest income and a lower tax liability.
C
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Government purchases of goods and services are
A. exhaustive because they directly absorb or employ resources and account for production. B. neither exhaustive or nonexhaustive because of the tax revenues that finance these purchases. C. nonexhaustive because they do not directly absorb resources and account for production. D. both exhaustive and nonexhaustive because in some cases they do directly absorb resources or account for production and in other cases they do not.
The production possibilities frontier in the one-period model is a
A) behavioral relationship between consumption and leisure. B) behavioral relationship between consumption and government spending. C) technological relationship between consumption and leisure. D) technological relationship between consumption and government spending.
If the quality of a good deteriorates from one year to the next while its price remains the same, then the value of a dollar falls
a. True b. False Indicate whether the statement is true or false
When economists refer to labor, what type of workers are they referring to?
What will be an ideal response?