Debt Ceilings Are Designed to

question 51

Multiple Choice

Debt ceilings are designed to

• A)Reduce the deficit.
• B)Balance the federal budget.
• C)Specifically reduce the debt held by banks.
• D)Do nothing since the Supreme Court held them unconstitutional in 1985.

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Definitions:

Consumption Tax

A tax on the purchase of goods and services.

Income Tax

A tax levied by governments on individuals or businesses based on their income or profits.

Flow Measure

A metric that quantifies the movement or transfer of resources, goods, services, or financial assets over a specific period of time.

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.