5. Which of the following statements are TRUE? (a) In a situation of a sovereign debt crisis Keynesian macroeconomic policy is unavailable because the government is practically unable to borrow. (b) Balancing the national government budget each year is sound macroeconomic policy (c) It is possible and preferable to balance the national government budget over the business cycle. (d) The national debt always implies mortgaging our children's future and thus government should seek to retire as much of this debt as possible. (e) The part of the national debt that is owed to other parts of the national government should not be counted as a problem since it involves the government owing money to itself.

The objective of the question is to identify which of the given statements about macroeconomic…

Answered: 5. Which of the following statements…

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Chapter1: Making Economics Decisions

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5. Which of the following statements are TRUE?

		(a) In a situation of a sovereign debt crisis Keynesian macroeconomic policy is unavailable because the government is practically unable to borrow.
		(b) Balancing the national government budget each year is sound macroeconomic policy
		(c) It is possible and preferable to balance the national government budget over the business cycle.
		(d) The national debt always implies mortgaging our children's future and thus government should seek to retire as much of this debt as possible.
		(e) The part of the national debt that is owed to other parts of the national government should not be counted as a problem since it involves the government owing money to itself.