A Government Increases Its Internal Debt for All of the Following

question 64

Multiple Choice

A government increases its internal debt for all of the following reasons EXCEPT which of the following reasons EXCEPT ________.

• A) The tax system is so poorly run that the government cannot collect all the revenues it expects.
• B) Government costs such as security and social programs exceed total tax revenues.
• C) The government borrows money from international financial institutions.
• D) State-owned enterprises run large deficits.

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Definitions:

Social Compensation Effects

The phenomenon whereby individuals work harder in a group to compensate for the perceived lower performance of others.

Collective Effort Model

A theoretical framework that suggests individual motivation in group tasks is influenced by the expected outcomes of the collective effort.

Kohler Effect

A phenomenon where less capable members of a group perform better when working collectively than when working alone.

Brainstorming

A creative group problem-solving and idea-generation technique aiming to produce a broad range of potential solutions.