The Theory That Government Borrowing May Function Like an Increase

question 246

Multiple Choice

The theory that government borrowing may function like an increase in taxes, that is, reducing current consumption and business expenditures, was formulated by

• A)John Maynard Keynes
• B)Jean Baptiste Say.
• C)David Ricardo.
• D)Adam Smith.

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Definitions:

Out-of-pocket Cost

Expenses that require immediate cash payment by an individual or company.

Future Outlay

Potential future spending or investments that a company plans to make, which may impact its financial position.

Opportunity Cost

The lost potential gain from other alternatives when one alternative is chosen.

Potential Benefit

The prospective advantage or gain that may be realized from a specific action or decision, often considered in planning and analysis.