The opportunity cost of borrowing funds to finance government deficits is
A) greatest when the economy is doing well.
B) greatest when the economy is in a recession.
C) zero.
D) the same regardless of the state of the economy.
Correct Answer:
Verified
Q83: The total amount of U.S. tax revenue
Q84: The average tax rate is
A)equal to the
Q85: Government borrowing
A)is the primary means of financing
Q86: As a proportion of domestic output, taxes
Q87: A progressive tax is such that
A)tax rates
Q89: The largest category of federal spending is
Q90: The largest source of tax revenue for
Q91: An income tax is progressive if the
A)absolute
Q92: The tax rates embodied in the federal
Q93: Government purchases and transfer payments
A)differ because the
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