The opportunity cost of the debt is
A) The interest payments on the debt.
B) Less of an issue if the economy is below full employment since crowding out is less likely to occur.
C) Not an issue if the debt is financed internally.
D) The decrease in public sector output because of government borrowing.
Correct Answer:
Verified
Q36: Automatic stabilizers
A)Are included in discretionary fiscal spending.
B)Cause
Q37: Which of the following might encourage the
Q38: In order to maintain a balanced budget
Q39: Automatic stabilizers tend to stabilize the level
Q40: An increase in unemployment,ceteris paribus,may
A)Lead to decreased
Q42: The structural deficit represents
A)Federal revenues minus federal
Q43: Increased government purchases crowd out private purchases
Q44: Crowding out is most likely to occur
Q45: If the budget deficit for each year
Q46: Which of the following is the best
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