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Digiron [165]
3 years ago
8

Most of the public debt is owed to citizens and domestic institutions. This is one reason that the public debt: 
A. Crowds out p

rivate investment
B. Does not impose a burden on future generations
C. Has a procyclical economic effect on the economy
D. Can result in the bankruptcy of the Central government
Business
1 answer:
Maurinko [17]3 years ago
7 0

Answer:

The correct answer is B. Does not impose a burden on future generations.

Explanation:

One aspect that is important for the purposes of economic policy is that of the term of the loan.

- Short-term debt: it is issued with a maturity of less than one year and usually works as a kind of bill of exchange, in this case the State. In Spain, short-term debt is represented by the Treasury Bills. Short-term debt has been used to cover cash needs of the State, the so-called cash deficits that presently state budgets.

- Medium term debt: fulfills the mission of obtaining funds for the financing of ordinary expenses. In Spain they fulfill this role The bonds of the State.

- Long-term debt: its mission is to finance extraordinary expenses and extensive profitability. Within the long term it can have a very varied duration and can even be of unlimited duration, giving rise to perpetual debt. In Spain they are represented by the obligations of the State.

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Answer:

B)  Implement policies to encourage greater consumption.

Explanation:

The Paradox of thrift says that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving due to that total saving may fall because of individuals' attempts to increase their saving, Therefore, to avoid the paradox of thrift policies to encourage consumption must be implemented.

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3 years ago
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Answer:

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Explanation:

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2 years ago
What is a transferable skill ?
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Vlad1618 [11]

Answer:

c. 10.38%

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