If debt-financed less productive government spending crowds out more productive private investment, future generations will bear
A. All of the burden of the debt due to higher taxes.
B. A portion of the burden of the debt relative to the population size.
C. Some of the burden of the debt due to lower productive capacity.
D. Zero burden as a result of the debt.
Answer: C
You might also like to view...
Since the mid-1990s, the Argentine peso has NOT experienced:
a. a one-to-one peg with the U.S. dollar. b. a large devaluation and crisis. c. limited flexibility, after which it was kept in a narrow band with the dollar. d. a currency union.
In the market for bank reserves, if the federal funds rate target is higher than the federal funds rate, the Fed will take action to ________ reserves
A) increase both the demand for and the supply of B) decrease the demand for C) decrease the supply of D) increase the demand for E) increase the supply of