Essay
In 1956, the Federal-Aid Highway Act of 1956 created the interstate highway system, at a cost of about $27 billion: $25 billion from the federal government and the remaining $2 billion from states. The full federal share was to be financed by issuing 30-year bonds. But this type of financing was not without its detractors, in particular Senator Harry Flood Byrd of Virginia, who biographer Alden Hatch described as having "an almost pathological abhorrence for borrowing that went beyond reason to the realm of deep emotion." (Quote from:
http://www.fhwa.dot.gov/publications/research/.../pavements/.../publicroads/96summer/p96su10.cfm.)
You have been given the unenviable task of convincing Senator Byrd that borrowing to build freeways is good and fair. Use the language of generational accounting to make your argument.
Correct Answer:

Verified
One argument against borrowing for the l...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q85: Consider the government's intertemporal budget constraint: <img
Q86: An implication of the intertemporal budget constraint
Q87: The largest U.S. debt-to-GDP ratio occurred during
Q88: Of the following countries, the one with
Q89: Germany has the highest share of medical
Q91: If investors begin to doubt the ability
Q92: The federal government's largest source of revenue
Q93: The ratio of all levels of government
Q94: Which of the following countries has the
Q95: An explanation of why governments are willing