Which of the Following Is a Valid Concern About Federal

question 30

Multiple Choice

Which of the following is a valid concern about federal budget deficits?

• A) The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit.
• B) Growth of the national debt will eventually lead to the bankruptcy of the government.
• C) When the debt comes due, future generations may be unable to pay it off.
• D) If the increases in the national debt reduce private expenditures on capital formation, aggregate demand is reduced.

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Definitions:

Trade Discount

A reduction in the list price granted by a supplier to a buyer, often based on the volume of goods purchased or as a promotion.

Freight Costs

Charges incurred for the transportation of goods from one location to another, often considered part of the cost of goods sold.

Credit Memo

A Credit Memo is a document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under specific circumstances, such as returned goods.

Gross Profit

Gross profit is a company's revenue minus its cost of goods sold, representing the profit made before deducting overheads, payroll, taxation, and interest payments.