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Is There Justification for Shifting Some of the Cost of Capital

Question 4

Multiple Choice

Is there justification for shifting some of the cost of capital projects to future taxpayers through issuing debt?


A) Yes, future taxes should be increased.
B) No, future taxes should be decreased.
C) Yes, because they will benefit from these investments.
D) No, because they will not benefit from these investments.
E) No. Capital projects should never be financed by issuing debt.

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