Government debt is not a problem as long as the:
a. Assets a government purchases increase national productivity by an amount less than the private sector.
b. Government spends the funds on consumption goods rather than investment goods, because consumption goods do not have to be amortized.
c. Government can borrow from foreigners.
d. Government can print money and repay the debt any time it wants.
e. Nation's equity level is rising.
.E
You might also like to view...
Automatic stabilization refers to
A) the policy of lowering tax rates during a recession. B) the policy of increasing autonomous G during a recession. C) the effect of income taxes in lowering the multiplier effect of changes in autonomous planned spending. D) all of the above.
Refer to the data. How many units of the two products will the rational consumer purchase?
Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4 respectively and that the consumer's income is $18.
A. 3 of L and none of M
B. 4 of L and 2 of M
C. 3 of L and 5 of M
D. 2 of L and 3 of M