Which of the Following Is Considered a Legitimate Concern of a Large

question 65

Multiple Choice

Which of the following is considered a legitimate concern of a large public debt?

• A) Bankruptcy of the federal government.
• B) Crowding-out of private investment.
• C) Burdening future generations.
• D) Collapse of the financial system.

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Definitions:

Price Elasticity

An index indicating how the amount of a product demanded or supplied changes in response to a price variation.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a particular period of time.

Price

The amount of money expected, required, or given in payment for something, often determined by the conditions of demand and supply.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.