Crowding Out Is Most Likely to Occur When the Federal

question 20

Multiple Choice

Crowding out is most likely to occur when the federal government

• A)Runs a surplus and pays off part of the debt.
• B)Has a balanced budget and refinances a portion of the debt that matures.
• C)Runs a deficit and raises taxes to generate more revenue.
• D)Runs a deficit and sells bonds to make up the difference.

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Definitions:

Charitable

Related to the act of giving help, especially financial support, to those in need.

Virtues List

A compilation of moral and ethical qualities considered as positive traits and admired in a person.

Justice

The fair and equitable treatment of individuals, ensuring that rights are upheld and that decisions are made according to the rule of law and ethical standards.

Wisdom

The quality of having experience, knowledge, and good judgment.