Author Question: Which of the following is a valid concern about federal budget deficits? a. The welfare of future ... (Read 20 times)

fbq8i · **on:** Jun 30, 2018

Which of the following is a valid concern about federal budget deficits?
a. The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit.
b. Growth of the national debt will eventually lead to the bankruptcy of the government.
c. When the debt comes due, future generations may be unable to pay it off.
d. If the increases in the national debt reduce private expenditures on capital formation, aggregate demand is reduced.

Question 2

Flexible, or floating, exchange rate is determined by the:
a. World Bank. b. forces of supply and demand.
c. price of gold. d. Federal Reserve.