Which of the Following Is Not True with Regard to Government

question 27

Multiple Choice

Which of the following is not true with regard to government budget deficits?

• A) Budget deficits reduce capital investment, future productivity and, therefore, future incomes.
• B) Budget deficits place the burden of current spending on future taxpayers.
• C) Budget deficits should be scrutinized because they are the only way to transfer wealth across generations of taxpayers.
• D) Budget deficits reduce national saving.

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Definitions:

Individualistic Societies

Societies that prioritize the needs and rights of the individual over those of the group or community.

Group Membership

The affiliation or identification with one or more social groups, which can influence individual attitudes, behaviors, and perceptions.

Reciprocity Principle

The social norm that suggests that people should return a favor or action with another equivalent favor or action.

Search-And-Rescue

Operations or missions tasked with locating and providing aid to people who are in distress or imminent danger.