A Direct Cost of Public Debt Is

question 42

Multiple Choice

A direct cost of public debt is:

• A) the interest the government has to pay to the people it has borrowed from.
• B) it allows the government to be flexible when something unexpected happens.
• C) it can pay for investments that will lead to economic growth in the long run.
• D) All of these are costs to holding public debt.

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Definitions:

Outcome

refers to the final product or result attained from a process, action, or event which can be used to measure the effectiveness or success of the operation.

Stimulus

A stimulus is an event or object that elicits a sensory or behavioral response in an organism or system.

Goal Theory

A framework suggesting that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

Difficult Goals

Targets or objectives that are challenging to achieve and require significant effort, planning, and resources.