Borrowing to pay for long-lived capital expenditures makes sense as
A) the benefits are received in the current year so the burden of paying for them should be spread over many years.
B) the benefits are received over many years so the burden of paying for them should be spread over many years.
C) the benefits are received in the current year so the burden of paying for them should be paid in the current year.
D) the benefits are received over many years so the burden of paying for them should be paid in the current year.
E) the benefits received are received over many years so the extra burden of interest payments are always justified.
Correct Answer:
Verified
Q236: Some economists argue that the federal government
Q237: The main economic objection to the austerity
Q238: The government budget for the country of
Q239: The federal budget deficit acts as an
Q241: When does the Government of Canada borrow?
Q242: How could the existence of an employment
Q243: What is "austerity" and why would the
Q257: In Year 1 suppose the economy is
Q280: Compare the effect on the price level
Q287: The double taxation problem occurs because households
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents