Which of the Following Has Been Advanced as a Legitimate

question 11

Multiple Choice

Which of the following has been advanced as a legitimate reason for federal budget deficits?

• A)Both c and d are legitimate reasons for government budget deficits.
• B)All of the following.
• C)Deficits help reduce the size and duration of recessions through the automatic stabilizers.
• D)Deficits have been used to finance capital projects.
• E)If the government had to fund all of its programs with tax revenues,the programs wouldn't get funded.

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Definitions:

Quota

A type of trade restriction that limits the quantity of a good that can be imported or exported during a specific time period.

Market

Any structure that allows buyers and sellers to exchange any type of goods, services, and information.

Medallions

Licenses or permits, often used in reference to the system regulating taxis where a limited number of medallions are issued, granting the right to operate a cab.

Price Floor

A government-imposed minimum price for goods or services, intended to prevent prices from falling below a certain level.