A State Created a Housing Authority to Provide Financing for Low-Income

question 4

Multiple Choice

A state created a Housing Authority to provide financing for low-income housing.The Authority issues bonds and uses the proceeds for that purpose.Currently the Authority has outstanding $200 million in bonds backed by the State's promise to cover debt service shortages should they arise.The State Constitution specifically limits the State to no more than $2 million in general obligation debt.How can the state officials defend the $200 million in debt outstanding?

• A)The debt is not general obligation debt.
• B)The State is only morally obligated for the debt.
• C)The debt is the debt of the Authority, not the State.
• D)All of the above.

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Definitions:

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Events

Occurrences or happenings, especially those of significance.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort (dissonance) when they hold conflicting beliefs, attitudes, or values and are motivated to reduce this discomfort.

Boring Task

A task that is perceived as monotonous and uninteresting, often leading to decreased motivation and attention.