1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
I am Lyosha [343]
3 years ago
14

Is there a potential problem if governments continually finance goods and services by borrowing money ? A.Yes, it is unconstitut

ional for governments to borrow money. B) Yes, eventually their debts must be repaid with interest. C) No, governments can accumulate debts without limit. D) No, it is always easier to pay off the debts later.
Business
2 answers:
frosja888 [35]3 years ago
4 0
The answer is B,"Yes, eventually their debts must be repaid with interest.

dezoksy [38]3 years ago
3 0

Is there a potential problem when governments continually borrow?

B) Yes, eventually their debts must be repaid with interest.

A classic example in history was the experience of the French government under the Bourbon dynasty, which ultimately gave way to the French Revolution.

The French monarchy was the envy of Europe, and the Palace of Versailles maintained the most glorious lifestyle you could imagine. The royals and aristocracy lived large – too large. The government had accumulated 4 billion <em>livres</em> worth of debt by 1789. 1 <em>livre</em> in their monetary terms then = approx. $4 in our monetary terms in the US today, so that’s a $16 billion national debt. 40% of the government’s budget was going to pay interest on debts. And it kept getting worse. In 1786, for example, government income was 357 million <em>livres </em>and expenses were 555 million. So that's about 200 million added to the national debt in just one year. The debts kept piling on, and it was reaching a point when lenders were starting to say no to any further loans. The government had reached a position where it could not go forward without levying even more oppressive tax burdens on the people, and the people weren’t willing to pay.

It should be mentioned that, along with the regular lavish costs of the royalty and upper class lifestyles (all paid by the lower classes), a big part of the government’s debt had come from wars. There was the 7 Years War fought in Europe (1756-63) – known as the French and Indian War over here in the colonies. Losing that conflict didn’t sit well with France. And so when the colonial Americans broke out in revolution against the British monarchy, France devoted enormous financial aid (as well as officer support) to the Americans. The cost to France for supporting America’s revolution added up to 1 billion<em> livres </em> (about 4 billion in today’s dollars). This is part of what put France’s debt problem over the edge. When bankers and lenders would no longer give further loans to the French government, the series of events that led to the French Revolution fell into place.

You might be interested in
Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at
Svetradugi [14.3K]

Answer:

The journal entries for the given economic events are given below:

Date         Account Title                         Debit     Credit

7/1/17      Treasury Stock (113 X $88)     9,944

                 Cash                                                       9,944

9/1/17       Cash (62 X $94)                     5,828

                 Treasury Stock (60 X $88)                   5,280

                  Paid-in Capital from

                  Treasury Stock                                      548

(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17 Cash (51 X $86)                           4,386

                Paid-in Capital from

                Treasury Stock                          102

                     Treasury Stock (51 X $88)                   4,488

(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

3 0
2 years ago
A classmate excitedly tells you of what he believes to be a good deal. He goes on and on about signing up for a free 30-day tria
Nikitich [7]

Answer:

reciprocity principle

Explanation:

A reciprocity principle is a form of socio-psychological principle in which individuals generally tend to pay back in good, and in any form of capacity for whatever favor they receive.

Hence, in this case, the music company is hoping the the "reciprocity principle" will work on consumers that subscribe to free music as they might wish to give back to the company based on consumers feeling indebted to them for all the free music that was streamed

8 0
2 years ago
Was frederick taylor, the pioneer of scientific management, during the historical period of early management thinking?
Varvara68 [4.7K]

He for sure was a mechanical revolutional pioneer!

5 0
3 years ago
The Fraser Hill Inn 3 a charming Bed &amp; Breakfast localed in Fraser Hill, Pahang outside of Kuala Lumpur. Fraser Hill is well
Damm [24]

Answer:

wow great story I love it

6 0
2 years ago
Read 2 more answers
Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no long
Veseljchak [2.6K]

Answer:

The correct answer is letter "E": Global marketing.

Explanation:

Global marketing refers to all the efforts a company males to promote its goods or services across its original borders. It allows firms to widen their possibilities of making more profits and reduces the risk of relying on domestic consumption only. Businesses with global marketing view tend to adapt their products to the different regions of operations or provide the most standardized version of their original good.

5 0
3 years ago
Other questions:
  • olivia wants her online business to be successful. she is setting goals. which of these would be best for Olivia to do? A) write
    12·1 answer
  • A __________ is a specific prediction of how variables may be related; whereas a ________ includes broad explanations and predic
    7·1 answer
  • You wish to retire in 15 years, at which time you want to have accumulated enough money to receive an annual annuity of $31,000
    6·1 answer
  • Staci invested $950 five years ago. Her investment paid 7.2 percent interest compounded monthly. Staci's twin sister Shelli inve
    10·1 answer
  • ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust th
    15·1 answer
  • Qué aspectos consideras relevantes dentro de una mega tendencia?<br><br> Ayuda porfavorr
    8·1 answer
  • What your body language can tell someone is an example of
    13·1 answer
  • If you could have an all-expenses paid trip to see any famous world monument, which monument would you choose?
    6·2 answers
  • 10. Which of the following scenarios would best exemplify Adam Smith's view of best serving the
    12·1 answer
  • What is greater 135 inches or 11 feet?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!