Capital budgeting refers to the idea that.. а. The government directs a fixed percentage of its budget toward investment expenditure that benefits future generations. b. If the debt-to-GDP ratio rises to unacceptable levels, the central bank can monetise portions of the government debt. С. The government would classify all expenditures as either consumption (benefiting current generations) or investment (benefiting future generations). d. Counter-cyclical fiscal policy is included in the government budget. е. Government budgets should be designed to be balanced, while fully recognising that changing economic circumstances may prevent such balance.
Capital budgeting refers to the idea that.. а. The government directs a fixed percentage of its budget toward investment expenditure that benefits future generations. b. If the debt-to-GDP ratio rises to unacceptable levels, the central bank can monetise portions of the government debt. С. The government would classify all expenditures as either consumption (benefiting current generations) or investment (benefiting future generations). d. Counter-cyclical fiscal policy is included in the government budget. е. Government budgets should be designed to be balanced, while fully recognising that changing economic circumstances may prevent such balance.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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