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The Diagram Below Shows the Budget Deficit Function for a Hypothetical

question 29

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The diagram below shows the budget deficit function for a hypothetical economy.
The diagram below shows the budget deficit function for a hypothetical economy.    FIGURE 32- 1 -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 subsidies to Canadian firms to offset rising energy costs. B) finance projects that deliver long- term benefits to society. C) invest in the purchasing of goods not available in the local economy. D) pay transfers such as welfare and old age pensions in the present period. E) ensure that all interest paid goes to residents rather than foreigners. FIGURE 32- 1
-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


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