Economists Are More Concerned About the Public Debt Than About

question 35

Multiple Choice

Economists are more concerned about the public debt than about the gross federal debt because:

• A) sale of Treasury securities to the public acquires resources that otherwise might be invested in the private sector.
• B) buying Treasury securities from the public acquires resources that otherwise might be invested in the private sector.
• C) adding federal securities to and subtracting them from the government's trust fund effects private investments positively.
• D) adding federal securities to and subtracting them from the government's trust fund effects private investments negatively.

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Definitions:

Fixed Cost

Expenses that do not change with the level of output or production, such as rent or salaries.

Aggregating Lots

The process of combining smaller batches of goods into larger lots to optimize production and distribution efficiency.

Multiple Products

Refers to an array of different items or goods that a business manufactures or sells.

Lot Sizes

The quantity of items that are processed, produced, or purchased at one time.