Large Federal Budget Deficits Are a Concern for All of the Following

question 50

Multiple Choice

Large federal budget deficits are a concern for all of the following reasons EXCEPT:

• A) large deficits create a financial burden on future generations.
• B) large deficits crowd out private borrowing because there is a finite pool of dollars.
• C) large deficits discourage people from spending money, which slows the economy.
• D) large deficits require the government to make payments to bond holders rather than using money to meet public needs.
• E) the interest payments owed on large deficits can take up a significant portion of the federal budget.

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Definitions:

Competence

The quality or state of having sufficient knowledge, judgment, skill, or strength for a particular task.

Identity

The fact of being who or what a person or thing is; a distinct personality of an individual regarded as a persisting entity.

Role Confusion

Occurs when individuals are unsure about their place or role in society, often experienced during adolescence as part of identity development.

Basic Trust

A sense of trust and security fundamentally formed during infancy, as outlined in Erik Erikson's stages of psychosocial development.