Multiple Choice
Potential problem(s) of the national debt is/are
A) government borrowing may crowd out private investment.
B) interest payments on the debt may be a burden for future generations if the debt is largely held by non-Canadians.
C) high interest payments on the debt may create self-perpetuating debt.
D) going into debt to finance consumption.
E) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q38: If leakages out of the circular flow
Q39: The size of the multiplier effect of
Q40: Canada will never go bankrupt because<br>A) debt
Q41: Which is a leakage out of the
Q42: In describing government, the words intervene, interfere
Q44: If leakages out of the circular flow
Q45: Government debt<br>A) equals revenues minus spending.<br>B) is
Q46: An economy has a debt of $20
Q47: There is a cyclical deficit when<br>A) government
Q48: Which statement is true?<br>A) Canada was created