Future generations will be hurt by a high national debt if incurring the debt
a. was done to pay Social Security recipients.
b. resulted in heavy commitments to bail out business firms.
c. increased formation of capital.
d. slowed the formation of capital.
d
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Investment spending tends to be closely related to the current pace of economic growth
Indicate whether the statement is true or false
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.
When the government increased spending during the 1930s in an attempt to create jobs and end the Great Depression, it provided an example of expansionary
(a) fiscal policy. (b) monetary policy. (c) regulatory policy. (d) welfare policy.
Which of the four types of decision makers in the U.S. economy plays the largest role?
a. U.S. firms and government because they produce the products that households consume b. U.S. households because they supply goods to the product markets and are demanders in resource markets c. foreign households, firms, and governments because they greatly outnumber those of the United States d. U.S. firms and government because they create employment for domestic households and produce goods and services e. U.S. households, as buyers in product markets and sellers in resource markets