Which of the Following Is a Reason Why We Should

question 35

Multiple Choice

Which of the following is a reason why we should consider the federal national debt a problem?

• A)The federal government is in danger of defaulting on its debt.
• B)If the debt drives up interest rates, crowding out will occur.
• C)If the debt was incurred to finance improvements in infrastructure, crowding out will occur.
• D)If the debt was incurred to finance research and development, crowding out will occur.
• E)If the debt increases private consumption less investment will occur.

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Definitions:

Capitalistic System

An economic system where private individuals rather than the state own and operate the means of production and distribution of goods and services, driven by profit.

Pluralist View

The perspective that power in societies is distributed among various groups and interests, and that no single group dominates others consistently.

Workplace Conflict

Disagreements, disputes, or tensions among workers or between employees and management in a workplace, which can arise from issues related to job duties, working conditions, or interpersonal relationships.

Shock Effect

A phenomenon where a significant event or change within an organization or economy generates notable reactions or adjustments among its members or participants.