There Is a Long-Term Burden of Government Debt in a Closed

question 12

Multiple Choice

There is a long-term burden of government debt in a closed economy when

• A)foreign owners of Canadian debt demand repayment.
• B)it is no longer possible to find individuals in the private sector willing to finance the debt.
• C)the burden of the debt is being borne by the current generation rather than future generations.
• D)present consumption and government expenditure are not reduced because of future crowding-out.
• E)the stock of physical productive capital is reduced because of crowding out.

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Definitions:

Membranous Labyrinth

The membranous labyrinth is a fluid-filled network of sacs and tubes in the inner ear involved in hearing and balance.

Stapes

A small stirrup-shaped bone in the middle ear, transmitting vibrations from the incus to the inner ear, crucial for hearing.

Middle Ear

The section of the ear between the eardrum and the inner ear, containing the ossicles that transmit sound vibrations.

Tympanic Membrane

The thin layer separating the outer ear from the middle ear, which vibrates in response to sound waves.