Fiscal Policy & Development Dynamics Assessment
Module 4 • 10 Questions
Question 1 of 10
0 of 10 answered
A government borrows to build freight corridors and power infrastructure that raise future productivity. How should this debt be classified under the module?
A
Bad debt because all fiscal deficits are consumption spending.
B
Good debt because it builds assets that can raise future GDP and repayment capacity.
C
Monetization because all government borrowing creates currency.
D
Revenue expenditure because infrastructure always funds current operations.