A Deficit Will Burden Future Generations

question 182

Multiple Choice

A deficit will burden future generations

• A)because the obligation to pay it off must be faced sooner or later.
• B)if it produces higher interest rates when the economy is near full employment.
• C)because future generations will have to pay taxes to fund the interest payments to Americans who hold the debt.
• D)All of the above are correct.

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Definitions:

Break-Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Cost Volume Profit Analysis

A managerial accounting technique used to analyze how changes in cost and volume affect a company's operating income and net income.