Which of the Following Correctly Describes a Way in Which

question 22

Multiple Choice

Which of the following correctly describes a way in which deficit spending can impose a burden on future generations? I. Failure to allocate deficit spending to uses that boost future real Gross Domestic Product (GDP) will require taxing future generations at a higher rate to repay the resulting higher public debt.
II) Government deficits that lead to higher employment and real Gross Domestic Product (GDP) in the future will generate increased income taxes for future governments, which will respond by spending the higher tax revenues, creating higher future government budget deficits.
III) Other things being equal, deficit spending fuels increased consumption of goods and services by the current generation that crowds out capital investment, thereby leaving future generations with a smaller stock of capital than otherwise would have existed.

• A) I only
• B) II only
• C) I and III only
• D) II and III only

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Definitions:

Global Rivals

Companies or entities that compete against each other across international markets and jurisdictions.

Conflict Management Style

Conflict management style is the approach or strategy an individual uses to handle disagreements or conflicts with others.

Avoidance

A strategy or behavior aimed at preventing conflict or steering clear of certain situations due to perceived or real threats.

Indirect Conflict Management

A strategy for dealing with conflict that avoids direct confrontation or negotiation, often through the use of intermediaries, delay, or addressing underlying issues indirectly.