Which Allocation of the Budget Surplus Would Lead to a Slow

question 55

Multiple Choice

Which allocation of the budget surplus would lead to a slow accumulation of the nation's capital stock-eventually causing increases in consumption?

• A) Using the surplus to reduce the national debt
• B) Using the surplus to increase government spending levels
• C) Using the surplus to pay for new government programs.
• D) Using the surplus to increase taxes

---

Definitions:

Fiedler's Contingency Theory

is a leadership theory proposing that a leader’s effectiveness is contingent upon how well the leader's leadership style matches the current context or environment.

Situational Theory

A leadership theory suggesting that the best leadership style depends on the specific situation, including factors like task structure, leader's power, and relationships.

Behavioural Theory

A framework suggesting that learning is based on the idea that all behaviors are acquired through conditioning.

Ohio State University

A public research university located in Columbus, Ohio, known for its contributions to various fields of academia and research.