Which of the Following Will Make It More Difficult for the United

question 36

Multiple Choice

Which of the following will make it more difficult for the United States to control the growth of the federal debt in the decade ahead?

• A)Debt financing makes it possible for elected political officials to provide voters with highly visible current benefits without having to impose visible current cost in the form of higher taxes.
• B)The movement of the large baby-boom generation into the retirement phase of life will make it more difficult to control federal spending.
• C)The recent growth of the federal debt as a share of GDP will mean higher interest costs in the future.
• D)All of the above.

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Definitions:

Mutual Mistake

Mistake as to the same material fact on the part of both parties to a contract. In this situation, either party can cancel the contract.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.

Undue Influence Rule

A legal principle that voids contracts or agreements if one party has been unjustly persuaded or coerced by another, compromising their free will.

Duress Rule

A legal principle that negates the validity of an agreement if it was made under coercion or threat of harm.