It Can Be Argued That a Government Budget Deficit,rather Than

question 59

Multiple Choice

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

• A)pay transfers such as welfare and old age pensions in the present period.
• B)finance projects that deliver long-term benefits to society.
• C)invest in the purchasing of goods not available in the local economy.
• D)ensure that all interest paid goes to residents rather than foreigners.
• E)pay subsidies to Canadian firms to offset rising energy costs.

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Definitions:

Incentive to Change

A factor or set of factors that motivates individuals or entities to alter their behavior or decision-making.

Equitable

Fair or impartial in treatment or judgment without bias or favoritism.

Efficient

When resources are used in a way that maximizes the production of goods and services without wasting any resources.

Birthday Cake

A special cake prepared and decorated to celebrate someone's birthday.