The Idea That Present Generations Benefit from Borrowing What Future

question 68

Multiple Choice

The idea that present generations benefit from borrowing what future generations must pay is called:

• A) the budget deficit.
• B) intertemporal substitution.
• C) the intertemporal budget constraint.
• D) generational accounting.
• E) discretionary spending.

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Definitions:

Buying

The action of acquiring ownership in a security or other financial asset in the hope of generating a gain.

Selling

The process of parting with goods or services in exchange for money or other compensation.

Hedge Strategy

Investment strategies intended to reduce potential losses that may be incurred from adverse price movements in assets.

Short Oil Futures

A speculative strategy involving the sale of oil futures contracts in anticipation of oil prices falling, intending to buy back at a lower price.