If Crowding Out Occurs, the Main Burden of the Debt

question 91

Multiple Choice

If crowding out occurs, the Main Burden of the debt is

• A)smaller government assets passed along to the next generation.
• B)smaller capital stock passed along to the next generation.
• C)fewer government services during this generation.
• D)higher debt payments passed along to the next generation.

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Definitions:

Nonreciprocal Transaction

Transactions where one party transfers resources or obligations without directly receiving anything of approximately equal value in exchange.

Unconditional Promises

Commitments made by an entity that do not depend on future events or conditions for their execution.

Program Services Expenses

Costs directly related to the activities or services provided by a nonprofit organization to fulfill its mission.

Supporting Services Expenses

Expenses incurred for services that assist in the operation of a business, such as human resources, accounting, and IT support.