It can be argued that a government budget deficit, rather than being a burden for future generations, may provide net benefits to future generations. This view is correct if the current budget deficit is used to... O a. Pay transfers such as welfare and old age pensions in the present period. O b. Ensure that all interest paid goes to residents rather than foreigners. O c. Finance projects that deliver long-term benefits to society. O d. Invest in the purchasing of goods not available in the local economy. O e. Pay subsidies to Canadian firms to offset rising energy costs.

It can be argued that a government budget deficit, rather than being a burden for future generations, may provide net benefits to future generations. This view is correct if the current budget deficit is used to... O a. Pay transfers such as welfare and old age pensions in the present period. O b. Ensure that all interest paid goes to residents rather than foreigners. O c. Finance projects that deliver long-term benefits to society. O d. Invest in the purchasing of goods not available in the local economy. O e. Pay subsidies to Canadian firms to offset rising energy costs.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section18.5: Should The Government Balance Its Budget?

Problem 5QQ

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Question

It can be argued that a government budget deficit, rather than
being a burden for future generations, may provide net
benefits to future generations. This view is correct if the
current budget deficit is used to...
O a Pay transfers such as welfare and old age pensions in
the present period.
O b. Ensure that all interest paid goes to residents rather
than foreigners.
O c. Finance projects that deliver long-term benefits to
society.
O d. Invest in the purchasing of goods not available in the
local economy
O e. Pay subsidies to Canadian firms to offset rising
energy costs.

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