The Real Burden of an Increase in the Public Debt

question 68

Multiple Choice

The real burden of an increase in the public debt:

• A)may be very small or conceivably zero when the economy is in the midst of a severe depression.
• B)will be smaller when full employment exists than it will when the economy has large quantities of idle resources.
• C)can be shifted to future generations if the debt is internally financed.
• D)can best be measured by the dollar increase in the size of the debt.

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Definitions:

Tail

The section at the extreme end of a distribution curve, representing outcomes that are less likely to occur.

Histogram

A graphical representation of the distribution of numerical data, where the data are grouped into ranges and depicted as bars.

Modal Class

The class interval with the highest frequency in a frequency distribution, representing the most common category or range of data.

Observations

The collection of data points or information obtained through watching, measuring, or recording something.