Other things equal, the stock of capital inherited by future generations is likely to be smaller when government spending:
A. is financed by taxation.
B. increases during a period of recession, rather than prosperity.
C. is financed by borrowing.
D. is primarily for capital-type goods.
Answer: C
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Unprecedented stimulative policies throughout the global economy have sparked debate over the inflationary implications. Defenders of the policies argue that, even if the policies raise inflationary expectations, actual inflation will remain low
Critics charge that current policies are nearly certain to result in excessive inflation. What does the aggregate supply curve have to say?
According to the economics of exhaustible resources, if the interest rate increases,
A) an exhaustible resource will be used up sooner. B) an exhaustible resource will be used up over a longer period of time. C) the period of time until an exhaustible resource is used up will not change. D) none of the above