Which of the Following Is Not True with Regard to the Burden

question 51

Multiple Choice

Which of the following is not true with regard to the burden of the U.S.national debt?

• A)The debt does burden future generations to the extent that it is sold to foreigners.
• B)Budget deficits are not appropriate for stabilization purposes under any circumstances.
• C)The debt will reduce the nation's capital stock if incurred during a fully employed economy.
• D)The large deficits of the 1980s and early 2000 were particularly worrisome because they were not attributable to recessions.

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Definitions:

Acquiring Firm

This is a company that purchases most or all of another company's shares to gain control over that company.

Replacement Cost

The cost to replace an asset of a company at its current price, without considering depreciation.

Tax Considerations

Factors related to tax regulations and laws that impact financial decisions and strategies, influencing the net outcome of investments and operations of both individuals and corporations.

Motivate Mergers

Motivated Mergers refer to mergers driven by factors such as economies of scale, increased market share, or other strategic benefits that enhance the value of the merged entity.