A Deficit Will Burden Future Generations

question 182

Multiple Choice

A deficit will burden future generations

• A)because the obligation to pay it off must be faced sooner or later.
• B)if it produces higher interest rates when the economy is near full employment.
• C)because future generations will have to pay taxes to fund the interest payments to Americans who hold the debt.
• D)All of the above are correct.

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.

Unit Sales

The quantity of product sold by a company in a given period.

Unit Contribution Margin

Unit Contribution Margin is the difference between the selling price of a unit and the variable cost associated with making that unit, indicating how much each unit contributes to covering fixed costs and generating profit.

Advertising Budget

The amount of money allocated for promoting products, services, or a brand during a specific period.