The Policy of Running Deficits and Only Gradually Increasing Taxes

question 31

Multiple Choice

The policy of running deficits and only gradually increasing taxes later to service the debt is referred to as

• A) crowding out.
• B) tax-smoothing.
• C) generational accounting.
• D) Ricardian equivalence.

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Definitions:

Physical Responses

Bodily reactions to stimuli, including stress, excitement, or environmental changes.

Emotional Responses

The feelings or emotions that are elicited in an individual as a reaction to stimuli or situations.

Muscle Tension

Physical discomfort or strain in the muscles, often resulting from stress, overuse, or underlying health conditions, that can lead to pain and stiffness.

Burnout

A psychological syndrome emerging as a prolonged response to chronic interpersonal stressors on the job, characterized by exhaustion, cynicism, and a feeling of reduced professional efficacy.