What Is the Difference Between the Government's Debt and the Government's

question 4

Multiple Choice

What is the difference between the government's debt and the government's deficit?

• A)The debt is the annual shortfall of revenues minus disbursements whereas the deficit is the accumulation of past debts.
• B)The debt is the amount the government pays in interest payments whereas the deficit has not yet incurred interest charges.
• C)The debt is the amount payable to the Bank of Canada whereas the deficit is the annual shortfall of revenue minus disbursements.
• D)The debt is the accumulation of past deficits whereas the deficit is the annual shortfall between revenues and disbursements.
• E)The debt is the difference between tax revenues and government expenditures whereas the deficit is the difference between tax revenues and borrowing.

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Definitions:

Reinforcement Theory

A psychological theory suggesting that behavior is driven by its consequences, reinforcing desirable behaviors while discouraging undesirable ones.

Orienting Reflex

The instinctual reaction of an organism to a novel stimulus, often involving attention redirection towards the source of the stimulus.

Stimulus

Any event or situation that evokes a response or reaction from an organism or system.

Intrinsic Motivation

The drive to engage in an activity for its own sake, because it is interesting and satisfying in itself, not for some separate outcome.