Which of the following statements is TRUE about the public debt and future generations?
A) Future generations will always be worse off because they will have to pay off the public debt.
B) Increased consumption today will lead to increases in the capital stock in the future.
C) Future generations may be better off if the rate of return on the borrowed funds is higher than the interest rate paid to foreign residents.
D) The public debt cannot be held by foreign residents therefore we really owe the debt to ourselves.
C
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If a country's currency depreciates, the country will experience a ________ in exports and a ________ in imports
A) rise; rise B) fall; fall C) rise; fall D) fall; rise
The single most important contributor to China's economic growth has been ________
A) government-directed credit to key economic sectors B) strong demand for China's exports C) rapid improvements in worker productivity D) a substantial increase in the utilization of labor and capital inputs