Which of the Following Is a Reason Why We Should

question 93

Multiple Choice

Which of the following is a reason why we should consider the federal national debt a problem?

• A)The federal government is in danger of defaulting on its debt.
• B)If the debt drives up interest rates,crowding out will occur.
• C)If the debt was incurred to finance improvements in infrastructure,crowding out will occur.
• D)If the debt was incurred to finance research and development,crowding out will occur.

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Definitions:

Difference-in-Difference Estimate

A statistical technique used to measure the effect of a specific intervention or treatment by comparing the before-and-after differences in groups.

Price Change

An adjustment in the selling price of goods or services, which can either increase or decrease depending on various factors.

Sales

The act of trading a good for cash; the process of making a sale.

Marginal Costs

The rise in the overall expense incurred from the production of an extra unit of a good or service.