Question 2Governments borrow because:1 pointTheir tax revenues are not enough to cover their expendituresOf unexpected catastrophes like floods, disease, etcThey are expansionist in nature and must finance a war or pay for its defenceOf entitlement programs like public health and employment insuranceAll of the above

Governments borrow because:1 pointTheir tax revenues are not enough to cover their expendituresOf unexpected catastrophes like floods, disease, etcThey are expansionist in nature and must finance a war or pay for its defenceOf entitlement programs like public health and employment insuranceAll of the above

Question 3Except for one, all of the following institutions enable other governments to borrow more at a lower cost than they would have on their own:1 pointThe United NationsThe European Central BankThe World BankThe International Monetary FundThe International Bank for Reconstruction and Development

What are some of the ways governments who have borrowed too much can resolve this problem?1 pointBorrow moreIncrease interest rates to make borrowing more difficultStimulate economic growth through productivity gains and key investmentsb) and c) onlya) and b) and c)

Question 1Which of the following is true about government debt?1 pointMost of the US government debt must be paid back to foreign entitiesMost of the US government debt must be paid back to its citizensGovernment debt is risk-freeGovernment debt is typically less risky than corporate debt b) and d) are true about government debt

The manipulation government expenditure and taxation is called........Question 8Answera.fiscal policyb.land policyc.employment policyd.welfare policy