It is desirable for the federal government to borrow, provided that the money is spent on projects that yield a flow of future benefits sufficient to repay the loan.

Question

Quizplus · Accepted Answer

The statement correctly reflects the concept of investing for the future. If the borrowed funds are used wisely for projects that have the potential to generate sufficient revenue and benefits, it can help the country to grow and repay the loans in the long run. However, if the borrowed money is used for non-productive or wasteful expenses, it can add to the national debt without any returns.

It Is Desirable for the Federal Government to Borrow, Provided