If the Federal Government Runs a Surplus Consistently, Then Which

question 4

Multiple Choice

If the federal government runs a surplus consistently, then which of the following is likely to occur?

• A)National saving will decline.
• B)The gross federal debt will increase.
• C)The gross federal debt will decrease.
• D)Market equilibrium interest rates are likely to rise as a result of the surpluses.

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Definitions:

Work-Related Accidents

Accidents that occur in the course of employment, potentially resulting in injury or occupational disease.

Defined-benefit Plan

A type of pension plan in which an employer promises a specified pension payment in retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Defined-contribution Plan

Defined-contribution Plan is a retirement savings plan where the amount contributed by the employer or employee is specified, but the future benefit amount is not guaranteed.

Contributory Plan

A pension plan in which contributions are made jointly by employees and employers