Critics of the Government's Fiscal Policies Argued That Government Deficits

question 40

Multiple Choice

Critics of the government's fiscal policies argued that government deficits

• A)prevented capital from flowing into the United States.
• B)were linked to the excess of imports over exports that occurred in the 1980s.
• C)caused the level of unemployment in the United States to increase during the 1980s.
• D)had directly contributed to a decline in the level of demand in the American economy.

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Definitions:

Merchantability

A warranty that goods sold will be of average quality, fit for the general purpose for which they are sold.

Implied Warranty

A legal term for assurances that are not explicitly stated but are assumed in the sale of goods or services, ensuring certain minimum standards.

Merchantability

A warranty that goods sold will be of satisfactory quality and fit for the purpose for which they are sold.

Warranty of Merchantability

A guarantee implied by law that a product sold will meet certain quality and performance standards.