Which of the Following Is Not a Legitimate Reason for Maintaining

question 48

Multiple Choice

Which of the following is not a legitimate reason for maintaining federal budget deficits?

• A)Deficits boost domestic saving,which in the long run could promote economic growth.
• B)Deficits help reduce the size and duration of recessions through automatic stabilizers.
• C)Deficits are used to finance capital projects.
• D)Public spending through deficit financing wins support from the voters.
• E)A federal budget deficit stimulates aggregate demand.

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Definitions:

Distribution

The process of making a product or service available for the consumer or business user that needs it, which can involve transportation, packaging, and delivery.

Production

The process of creating, developing, manufacturing, or bringing forth goods and services, typically involving both human labor and tools or machinery.

Collective Ownership

A principle or practice where the assets or property are owned jointly by all members of a group or community, emphasizing shared rights and responsibilities.

Means of Production

The tools, machinery, facilities, and resources used to produce goods and services, often discussed in the context of economic systems and ownership.