Which of the Following Is Not True with Regard to Government

question 27

Multiple Choice

Which of the following is not true with regard to government budget deficits?

• A) Budget deficits reduce capital investment, future productivity and, therefore, future incomes.
• B) Budget deficits place the burden of current spending on future taxpayers.
• C) Budget deficits should be scrutinized because they are the only way to transfer wealth across generations of taxpayers.
• D) Budget deficits reduce national saving.

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Definitions:

Research Method

The systematic plan, strategy, and approach that scientists and scholars use to gather, analyze, and interpret data and information to uncover new knowledge.

Self-fulfilling Prophecy

A prediction or expectation that causes itself to become true, due to the feedback between belief and behavior.

Attribution

The process by which individuals explain the causes of behavior and events, typically as being either internally (personally) or externally (situationally) driven.

Primary Drive

refers to the innate biological instincts, such as hunger and thirst, that motivate behavior required for survival.