When the Government Borrows Funds in Order to Pay for Its

question 189

Multiple Choice

When the government borrows funds in order to pay for its current expenditures,

• A) the government will have to repay the borrowed funds within five years.
• B) the government can spend without having to increase taxes, either now or in the future.
• C) future taxes will have to be higher in order to pay the interest on the borrowed funds.
• D) the cost imposed on the private sector is virtually eliminated because taxes can remain constant.

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Definitions:

IQ

An abbreviation for Intelligence Quotient, a score derived from standardized tests designed to measure human intelligence and cognitive abilities.

Adaptive Behavior

Behaviors or skills that enable individuals to meet their needs, comply with societal norms, and maintain a level of independence across various environments.

Intellectual Disability

A state defined by major restrictions in cognitive capabilities as well as in adaptive behavior, encompassing a wide array of social and daily life skills.

Normal Curve

A special frequency polygon, shaped like a bell, in which the scores are symmetrically distributed around the mean, and the mean, median, and mode are all located on the same point on the curve, with scores decreasing as the curve extends from the mean.