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It Can Be Argued That a Government Budget Deficit,rather Than

Question 102

Multiple Choice

It can be argued that a government budget deficit,rather than being a burden for future generations,may provide net benefits to future generations.This view is correct if the current budget deficit is used to


A) pay transfers such as welfare and old age pensions in the present period.
B) finance projects that deliver long-term benefits to society.
C) invest in the purchasing of goods not available in the local economy.
D) ensure that all interest paid goes to residents rather than foreigners.
E) pay subsidies to Canadian firms to offset rising energy costs.

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