[Solved] Borrowing to Pay for Long-Lived Capital Expenditures Makes Sense as
Question 240
Multiple Choice
Question 240Borrowing to pay for long-lived capital expenditures makes sense as
A)the benefits are received in the current year so the burden of paying for them should be spread over many years.
B)the benefits are received over many years so the burden of paying for them should be spread over many years.
C)the benefits are received in the current year so the burden of paying for them should be paid in the current year.
D)the benefits are received over many years so the burden of paying for them should be paid in the current year.
E)the benefits received are received over many years so the extra burden of interest payments are always justified.
Explore answers and other related questions 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.
Business
Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions
Related Questions
- Q235:Suppose that the federal budget is balanced when GDP is at potential GDP.If equilibrium GDP falls below potential, A)this will result in a current budget deficit. B)the cyclically adjusted budget will be balanced. C)government transfer payments will be rising and tax receipts will be falling. D)government receipts from social security premiums will be falling. E)All of the above are correct.
- Q236:The main economic objection to the austerity plan attached to the bailout of the Greek government during the global financial crisis was that A)reductions in government spending to balance the budget can make recessions worse. B)the plan was imposed on Greece by Germany. C)the Greek government debt is still unlikely to be repaid. D)the required cuts in pensions were not passed in a referendum. E)the increase in taxation made it harder for Greece to borrow from foreign creditors.
- Q237:Suppose the government wants to maintain a balanced budget.To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________. A)decrease; decrease B)decrease; increase C)increase; decrease D)increase; increase
- Q238:The government budget for the country of Economia is in surplus in 2019, and in deficit in the following year, 2020.We can conclude that A)the government must have raised tax rates or cut spending. B)the government must have cut tax rates or increased spending. C)the government fiscal policy did not change between 2015 and 2016. D)the government is not making use of automatic stabilizers. E)none of the above
- Q239:Some economists argue that the federal government should normally run a deficit at potential GDP, with the borrowed funds applied to A)consumption goods. B)investment goods. C)social security benefits. D)health care costs. E)imported goods.
- Q241:The total value of Government of Canada bonds outstanding equals A)the federal government deficit. B)the federal government surplus. C)the federal government debt. D)the cyclically adjusted budget deficit. E)the total of federal government assets.
- Q242:The federal government debt ________ when the federal government runs a deficit and ________ when the federal government runs a surplus. A)increases; increases B)decreases; increases C)increases; decreases D)decreases; decreases
- Q243:The federal government debt as a percentage of GDP did not rise A)during the Global Financial Crisis. B)during late 1990s and early 2000s. C)during the 1960s. D)during the 1980s. E)from 2009 to 2016.
- Q244:Accumulating debt poses a problem for the Canadian federal government because A)it is currently in danger of defaulting on on the debt. B)a large debt-to-GDP ratio causes crowding out. C)building roads and bridges do not yield enough benefits to justify their cost. D)the debt has to ultimately be paid off. E)a large debt-to-GDP ratio discourages imports.
- Q245:The cyclically adjusted budget is calculated at potential GDP.
Get Free Access Now!
Upload
Get free access by uploading any valuable academic documents
Invite
Invite your friends by sharing your unique referral link, and get a free access
Invite a friend
Join Us
Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access
Contact Us
© 2020-2022 Quizplus LLC. All Rights Reserved