A deficit will burden future generations
A) because the obligation to pay it off must be faced sooner or later.
B) if it produces higher interest rates when the economy is near full employment.
C) because future generations will have to pay taxes to fund the interest payments to Americans who hold the debt.
D) All of the above are correct.
Correct Answer:
Verified
Q180: The crowding-in effect depends on the sensitivity
Q181: In the late 1990s, the more than
Q182: Crowding out can best be defined as
A)private
Q183: The Troubled Asset Relief Program (TARP) totaled
Q184: If a budget deficit increases interest rates,
Q186: Crowding in can be defined as
A)an increase
Q187: Proponents of deficit reduction argue that the
Q188: By 2007, the deficit
A)was out of control
Q189: A serious burden of a budget deficit
Q190: If crowding out occurs, the Main Burden
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