Potential problem(s) of the national debt is/are
A) government borrowing may crowd out private investment.
B) interest payments on the debt may be a burden for future generations if the debt is largely held by non-Canadians.
C) high interest payments on the debt may create self-perpetuating debt.
D) going into debt to finance consumption.
E) all of the above.
Correct Answer:
Verified
Q163: Interest payments can create self-perpetuating debt when
A)
Q164: Crowding in occurs when
A) debt-financed fiscal policy
Q165: Roger has a $30 debt on his
Q166: A cyclical deficit is a government budget
Q167: Canada will never go bankrupt because
A) debt
Q169: Suppose the government starts with a debt
Q170: A structural surplus is a government budget
Q171: Gina owes $30 on her VISA card
Q172: Government debt
A) equals revenues minus spending.
B) is
Q173: Crowding out occurs when debt-financed government spending
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