Which of the Following Might Be a Good Reason for Running

question 65

Multiple Choice

Which of the following might be a good reason for running a budget deficit?

• A) A budget deficit allows for consumption to be more evenly distributed over time,which can be helpful during times of recession.
• B) It puts the repayment burden on future taxpayers,who are always better able to repay the accumulated debt.
• C) It is better than increasing taxes,because budget deficits do not have to be repaid.
• D) It allows for the expansion of entitlement programs to cover more people,thus reducing their financial burdens.
• E) There is never a good reason for running a budget deficit.

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Definitions:

Circular Bid

Corporate takeover bid communicated to the shareholders by direct mail.

Stock Exchange Bid

Corporate takeover bid communicated to the shareholders through a stock exchange.

Outstanding

Refers to the number of shares that are currently owned by investors, including restricted shares owned by the company's officers and insiders as well as those held by the public.

Successful Takeover

is an event where a company or entity successfully acquires control over another company, usually by purchasing a majority of its stock shares.