If the Government Issues Securities in Order to Finance Current

question 51

Multiple Choice

If the government issues securities in order to finance current consumption, then:

• A) it may be a burden to future generations if the securities were bought by foreign interests.
• B) it may be a burden as current generations need to pay for the interest repayments without any improvement in the country's productive capacity.
• C) it will not be a burden if the securities were bought by foreign interests.
• D) it will not be a burden if the debt is held domestically.

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Definitions:

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), used as a fertilizer and cleaning agent.

Catalyst

A material that accelerates the speed of a chemical reaction without experiencing any lasting chemical alteration.

Acid Equilibrium

The state of balance between the forward and reverse reactions in which an acid donates a proton to a base.

Acid Salt

A type of salt that contains an ionizable hydrogen atom, allowing it to act as an acid under suitable conditions.