When is debt financing most likely to harm future generations of Americans?
a. When the debt is held by domestic investors.
b. Any time the debt is held by foreign investors.
c. When the debt is held by foreign investors and the funds are channeled into productive investment projects.
d. When the debt is held by foreign investors and the funds are used to finance either current consumption or unproductive investments.
D
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Refer to Scenario 1-1. Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and by how much?
A) Its profit will be $6,000 lower. B) Its profit will be $700 lower. C) Its profit will be $700 higher. D) Its profit will be $6,700 higher.
Budget maximization by bureaus leads to
a. efficient budgets b. budgets greater than those desired by median voters c. budgets less than those desired by median voters d. budgets equal to those desired by median voters e. budgets less than those desired by the majority of voters