Critics of Spending on Infrastructure as a Means to Stimulate

question 53

Multiple Choice

Critics of spending on infrastructure as a means to stimulate the economy,such as Alan Viard of the American Enterprise Institute,note that,dollar for dollar,tax cuts and direct government payments ________ infrastructure spending,________.

• A) may not stimulate the economy as much as; but they take effect more quickly
• B) stimulate the economy more than; and they take effect more quickly
• C) stimulate the economy more than; even though they take longer to take effect
• D) stimulate the economy more than; and they take effect in an equal amount of time

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Definitions:

Payment Stream

A series of periodic payments that may be constant or variable, over time, often associated with loans or investments.

Discount Rate

In finance, the interest rate used to determine the present value of future cash flows, or in central banking, the rate charged to commercial banks for loans from the central bank.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, project, or financial product, often analyzed to assess the entity's liquidity, solvency, and financial viability.