A Serious Burden of a Budget Deficit and an Increase

question 100

Multiple Choice

A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits

• A)discourage consumption and therefore lead to production cutbacks.
• B)lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople.
• C)discourage investment and therefore may reduce the growth of the nation's capital stock.
• D)discourage foreign investment and therefore limit employment opportunities.

---

Definitions:

Money Value

The purchasing power of money, which can be affected by inflation and the general price level of goods and services.

Arthur

In the context of economics, Arthur does not directly relate to a specific key term; in other contexts, it could refer to a person's name or a historical figure.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, indicating optimal decision-making among competitors.

Michigan Football

The football team representing the University of Michigan, known for its history and achievements in college football.