Which of the following is a benefit of government debt? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the bo the wrong answers. Debt prevents the import-export ratio from exceeding transfer payments. The ability to pay for investments that lead to economic growth. Debt allows flexibility in offsetting an economic shock. Borrowing tends to increase wages and keep inflation rates stable.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
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Which of the following is a benefit of government debt?
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for
the wrong answers.
Debt prevents the import-export ratio from exceeding transfer payments.
The ability to pay for investments that lead to economic growth.
Debt allows flexibility in offsetting an economic shock.
Borrowing tends to increase wages and keep inflation rates stable.
Transcribed Image Text:Which of the following is a benefit of government debt? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Debt prevents the import-export ratio from exceeding transfer payments. The ability to pay for investments that lead to economic growth. Debt allows flexibility in offsetting an economic shock. Borrowing tends to increase wages and keep inflation rates stable.
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