What is the potential trade-off between using fiscal policy to stimulate economic growth and increasing the national debt?a) There is no trade-off. b) Increased economic growth can lead to higher tax revenue, offsetting the debt. c) A higher national debt can burden future generations with higher interest payments. d) All of the above.
What is the potential trade-off between using fiscal policy to stimulate economic growth and increasing the national debt?a) There is no trade-off. b) Increased economic growth can lead to higher tax revenue, offsetting the debt. c) A higher national debt can burden future generations with higher interest payments. d) All of the above.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 7SQ
Related questions
Question
Alert dont submit
Transcribed Image Text:What is the potential trade - off between using fiscal policy to stimulate
economic growth and increasing the national debt?a) There is no trade - off.
b) Increased economic growth can lead to higher tax revenue, offsetting the
debt. c) A higher national debt can burden future generations with higher
interest payments. d) All of the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning