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 in the current year so the burden of paying for them should be paid in the current year.
C) the benefits are received over many years so the burden of paying for them should be spread over many years.
D) the benefits are received over many years so the burden of paying for them should be paid in the current year.
C
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A horizontal LM curve implies that the expenditure multiplier, when compared with the simple Keynesian expenditure multiplier, is
A) smaller. B) larger. C) equal. D) equal to the inverse of the simple multiplier.
The distinction between income and needs of the working poor is not vital for policy concerns
Indicate whether the statement is true or false