Home » Finance for Everyone: Debt » Governments borrow because: Governments borrow because: 2. Question 2 Governments borrow because: 1 point Their tax revenues are not enough to cover their expenditures Of unexpected catastrophes like floods, disease, etc They are expansionist in nature and must finance a war or pay for its defence Of entitlement programs like public health and employment insurance All of the above Other Questions Of This Category Except for one, all of the following institutions enable other governments to borrow more at a lower cost than they would have on their own:What are some of the ways governments who have borrowed too much can resolve this problem?Access to borrow more is not a “free lunch”. This statement implicates which of the following?Miller and Modigliani’s nobel prize winning framework provides all of the following insights, except:Considering “Indifference analysis”, which indicates the level of operating income (or earnings before interest and tax, EBIT) where EPS (earnings per share) are equal whether the firm uses debt or…Which of the following statements are true concerning borrowing decisions?Which of the following factors influence how much debt a firm should take on?If a firm has a debt to equity ratio of 50%, its overall debt ratio must be:Assume a firm earns net income of $10,000 with total assets of $200,000 - half of which is debt - and has 20,000 shares outstanding. Based on this information, its EPS (earnings per share), ROA…Which of the following is true about government debt?When a firm is determining its target debt ratio, which of the following is paramount?Which of the following statements about financial literacy is true?Information like salaries, interest from savings accounts, and dividends from investments, can be found on which document?What is an example of a revolving credit arrangement?What are some of the signs suggesting that developed countries have borrowed too much money?
