page5 - 28. Proponents of debt reduction argue that the...

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28. Proponents of debt reduction argue that the rise in government debt during the 1980s a. can be justified since the United States was involved in major military conflicts. b. can be justified since the United States went through serious recessions. c. was primarily the result of politicians finding it easier to raise expenditures than cut taxes. d. None of the above are correct. 29. Which of the following is not true? a. The U.S. debt per-person is large compared with average lifetime income. b. The U.S. government currently has a surplus, in part because in recent years there has been strong economic growth. c. A potential cost of deficits is that they reduce private savings, thereby reducing growth of the capital stock and output growth. d. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so. 30. Which of the following is true? a. As long as the government debt grows faster than the nation's income, there is nothing to prevent the
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page5 - 28. Proponents of debt reduction argue that the...

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