Borrowing to pay for long-lived capital expenditures makes sense ...

[tatyanajohnson]

Borrowing to pay for long-lived capital expenditures makes sense as
 
  A) the benefits are received in the current year so the burden of paying for them should be spread over many years.
  B) the benefits are received in the current year so the burden of paying for them should be paid in the current year.
  C) the benefits are received over many years so the burden of paying for them should be spread over many years.
  D) the benefits are received over many years so the burden of paying for them should be paid in the current year.

Question 2

Ceteris paribus, an increase in the government's budget deficit will decrease the financial account surplus.
 
  Indicate whether the statement is true or false

[IRincones]

Answer to Question 1

C

Answer to Question 2

FALSE

[tatyanajohnson]

Excellent

[blakcmamba]

Great answer, keep it coming