A Serious Burden of a Budget Deficit and an Increase

question 100

Multiple Choice

A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits

• A)discourage consumption and therefore lead to production cutbacks.
• B)lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople.
• C)discourage investment and therefore may reduce the growth of the nation's capital stock.
• D)discourage foreign investment and therefore limit employment opportunities.

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Definitions:

Daycare Benefits

Advantages associated with the use of daycare services, including socialization, educational opportunities, and provision of a structured environment for children.

Politeness

A social behavior that is respectful and considerate of others, often governed by cultural norms and used to facilitate smooth social interactions.

Maternal Employment

The participation of mothers in the labor force, including their balance between work responsibilities and family life.

Cognitive Ability

The capacity to perform mental processes such as thinking, reasoning, and problem-solving, which underlie the acquisition of knowledge and understanding.