Which of the Following Is Correct

question 32

Multiple Choice

Which of the following is correct?

• A)Deficits always require people to consume at the expense of their children.
• B)If the government uses funds to pay for investment programs,on net the debt need not burden future generations.
• C)If the government is in debt it must be running a deficit currently.
• D)The current government debt is a large share of lifetime income.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in which an individual categorizes a situation based on patterns of previous experiences or beliefs about the scenario.

Over-Confidence

A psychological condition where an individual overestimates their knowledge, skill, or importance.

Noise Trader

A trader whose trades are not based on information or meaningful financial analysis.