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:

Performance Obligations

A term in revenue recognition denoting promises to transfer goods or services to a customer as part of a contract.

Cash Receipts

The total amount of money, including cash, checks, and electronic transfers, received by a business during a given period.

Accounting Records

Documentation and books that maintain a systematic record of financial transactions and positions of a business.

Invoice Price

The amount charged by a seller for goods or services, exclusive of any discounts or allowances.