The idea that a large national debt is "mortgaging the future of our children and grandchildren" is misleading because:
A. it is the Federal Reserve that will be responsible for making interest payments on the debt.
B. future generations will have to bear the opportunity costs of the resources that are used today.
C. future generations will not be liable for the interest obligations of the national debt.
D. future generations will inherit the interest income as well as the interest obligations.
Answer: D
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Expenditure changes may be potentially inequitable, as are tax changes, because
A) their spatial distribution must be determined by the legislature. B) their spatial distribution must be determined by the Fed. C) the government is slow to implement new programs. D) unlike Japan, public works projects are the province of the executive branch.
Andrea Schwatz has argued that the Great Depression was caused by
a. the fall in the stock of money. b. the fall in consumer durable spending. c. the fall in investment spending. d. the increase in nominal wages.