Which of the Following Does Not Reduce the Potential Burden

question 25

Multiple Choice

Which of the following does not reduce the potential burden of an increase in debt on future generations?

• A)the growth rate of output is high
• B)in response to increased debt,parents save more to leave their children larger bequests
• C)budget deficits raise interest rates
• D)All of the above are correct.

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Definitions:

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is judged based on how similar it is to one's mental representation of that category.

Pregnancy-Induced

Conditions or changes in health and physiology triggered or caused directly by pregnancy.

Representativeness Heuristic

A mental shortcut that involves making a probability judgment by comparing an object or event to a prototype of the object or event.

Prototype

An early sample, model, or release of a product that is used to test a concept or process or to act as a thing to be replicated or learned from.