Some Economists Argue That the Federal Government Should Normally Run

question 225

Multiple Choice

Some economists argue that the federal government should normally run a deficit at potential GDP,with the borrowed funds applied to

• A)consumption goods.
• B)investment goods.
• C)social security benefits.
• D)health care costs.

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Definitions:

Federal Law

Legislation that has been passed by the United States Congress and applies nationwide.

Express Contract

A contract in which the terms of the agreement are explicitly stated verbally or in writing.

Implied Contract

a contract formed by the actions, behavior, or circumstances of the parties involved, rather than written or spoken words.

Void Contract

A contract that lacks legal validity, making it unenforceable and as if it never existed from the onset.