ANSWERS  TO EXAMINATION (Level: advanced, type: hard)

151- Military spending brings short-term security, but in 20 years the weapons will be obsolete and need upgrading, and the infrastructure will constantly need more money to maintain. Unless attacked or directly threatened, keep investment in the military as low as possible. The Napoleonic experience has decisively proved that repeated wars are not economically profitable. Maybe one could gain from a short-term war, but long wars are detrimental to one's economy. On the contrary, investment in production and growth brings long-term economic security. So, the economic health of a country means proper balance between defense spending, the social requirements of the population and capital investment.

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