Which of the Following Is Not an Argument in Favor

question 14

Multiple Choice

Which of the following is not an argument in favor of requiring the government to balance its budget?

• A)Government debt imposes higher taxes or more borrowing on future generations.
• B)A balanced budget will smooth the business cycle.
• C)Deficits lower national saving.
• D)Recent history shows that Congress will run deficits even when deficits are not justified by war or recession.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Retirement Income

The funds or revenue that an individual receives after retiring from active employment, often derived from savings, investments, pensions, or social security benefits.

Defined Contribution Plan

A retirement plan in which the employee, employer, or both make contributions on a regular basis, but the benefit received upon retirement depends on the plan's investment performance.

401k Plans

A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.