One Potential Problem with the Chinese Government's Increases in Spending

question 80

Multiple Choice

One potential problem with the Chinese government's increases in spending on capital goods is that these increases have been achieved through

• A) high levels of borrowing in global financial markets.
• B) decreases in private consumption.
• C) debt refinancing and tariff revenues.
• D) a rapid expansion of the money supply.

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Definitions:

Equivalent

Equal in value, amount, function, meaning, etc., often used in mathematics and chemistry.

Per Annum

A Latin term meaning "per year," often used in financial contexts to describe rates or amounts calculated over a yearly basis.

Invested

Invested refers to the allocation of resources, usually money, into a financial venture with the expectation of receiving future returns.

Per Annum

Annually; indicating the occurrence, rate, or amount in a year.