Which of the Following Is a Valid Concern About Federal

question 30

Multiple Choice

Which of the following is a valid concern about federal budget deficits?

• A) The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit.
• B) Growth of the national debt will eventually lead to the bankruptcy of the government.
• C) When the debt comes due, future generations may be unable to pay it off.
• D) If the increases in the national debt reduce private expenditures on capital formation, aggregate demand is reduced.

---

Definitions:

WAN

Wide Area Network, a telecommunications network that extends over a large geographical distance, used to connect different local area networks (LANs) to allow for communication between them.

Ethernet

A family of technologies for local area networks (LANs) that facilitates the interconnection of computers and devices.

LAN

Short for Local Area Network, a computer network that interconnects computers within a limited area such as a residence, school, or office building.

Internet

A global system of interconnected computer networks that use the Internet Protocol suite (TCP/IP) to communicate between networks and devices.