When Congressional decision makers chose not to raise taxes to fight the war on terrorism, they
A. eliminated the opportunity cost of war.
B. exploited the fact that borrowed money has no opportunity cost.
C. borrowed the money, moving the opportunity cost into higher interest rates and/or crowding out.
D. printed all of the money required to fight the war on terrorism.
Answer: C
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Laws in some countries require bystanders to come to the aid of people in mortal danger. This legal obligation is called
A) compulsory volunteerism. B) judicial discretion. C) the duty to rescue. D) eminent domain.
Which of the following statements regarding perfect price discrimination is FALSE?
A) Only part of consumer surplus is captured by the firm as producer surplus. B) For the firm, the market demand curve becomes the firm's marginal revenue curve. C) The monopoly produces the output at which the marginal revenue equals the marginal cost. D) No deadweight loss is created.