Which of the following is not correct?
a. Deficits give people the opportunity to consume at the expense of their children, but deficits do not require them to do so.
b. Deficits and surpluses could be used to avoid fluctuations in the tax rate.
c. The only times deficits have increased have been during times of war or economic downturns.
d. Reducing the budget deficit rather than funding more education spending could, all things considered, make future generations worse off.
c
You might also like to view...
A monopoly firm operating with no trade will produce the profit-maximizing quantity where:
a. the firm's MC = MR, where MR is declining and below price. b. MR begins to increase and MC begins to decrease. c. P = MC. d. the firm's MC = MR, where MR is declining and equal to price.
An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase