Those who believe that the federal government should make it a priority to balance its budget argue that
A. Running a budget deficit is never justifiable.
B. Budget deficits cause real interest rates to be too low.
C. Government debt incurred today will lower the living standards of future generations.
D. Government debt held in private hands is a danger to national security.
E. Taxes should always be assessed at the level of aggregate demand.
Ans: C. Government debt incurred today will lower the living standards of future generations.
You might also like to view...
When firms price discriminate they turn ________ into ________
A) producer surplus, revenue B) consumer surplus, profit C) total cost, profit D) producer surplus, consumer surplus
Which of the following statements is true?
a. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich. b. Government failure may occur if voters are rationally ignorant. c. Government failure may occur because of special-interest group political pressure. d. All of these.