When the Government Cannot Balance the Budget, What Must the Government

question 159

Multiple Choice

When the government cannot balance the budget, what must the government do to make up for the shortfall?

• A) raise taxes
• B) cut taxes
• C) sell assets
• D) borrow

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Definitions:

Torts

Legal wrongs committed against a person or property, excluding breach of contract.

Scienter

Knowledge of wrongdoing or fraudulent intent in the commission of an act, especially a key element in certain legal proceedings.

Fraud

is the intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Misrepresentation

The act of giving false or misleading statements that induce someone into a contract, which can be grounds for voiding the agreement.