Deficit Spending and a Large National Debt Can Have Important

question 72

Multiple Choice

Deficit spending and a large national debt can have important effects on future generations because they

• A)allow generations to pass the opportunity costs of government spending onto future generations.
• B)can significantly impact spending on capital formation.
• C)pass costs onto future generations with no corresponding benefits.
• D)will cause the government to go bankrupt.

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Definitions:

Lifo Inventory

A method of inventory valuation where the last items placed into inventory are the first ones taken out, used to calculate the cost of goods sold and ending inventory.

Basic Earnings Per Share (Eps)

Basic Earnings Per Share (EPS) is a calculation used to gauge a company's profitability on a per-share basis, dividing net earnings available to common shareholders by the average outstanding shares.

Net Income

The remaining income of a company after deducting expenses and taxes from the total income generated.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting and inventory valuation.