Generational Accounting Implies That, Holding the Present Value of Government

question 5

True/False

Generational accounting implies that, holding the present value of government spending constant, budget deficits will not crowd out investment.

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Definitions:

Inferior Goods

Goods whose demand decreases as the income of consumers increases, in contrast to normal goods.

Income

Income generated regularly from employment or investments.

Soda

A carbonated soft drink that is flavored and sweetened, often consumed as a beverage.

Levy

Imposition of a tax, fee, or fine by a government or regulatory authority.