Which of the following is true of deficit spending and government debt?
a. The opportunity costs of government spending must be incurred today and cannot be passed on through deficit spending.
b. Because of the national debt, future generations will incur liabilities without any corresponding benefits.
c. Financing government spending with debt allows the government to pass the opportunity costs of government spending along to future generations.
d. All of the public debt is owed to foreigners because the people who pay taxes are U.S. citizens.
A
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Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy. (Use the terms budget line, marginal rate of substitution, and relative price in your explanation.)
What will be an ideal response?
Refer to Figure 7-1. The market equilibrium price is
A) $30. B) $25. C) $20. D) <$20.