If Government Spending Increases and Taxes Decrease

question 59

Multiple Choice

If government spending increases and taxes decrease:

• A)implicit liabilities will increase.
• B)implicit liabilities will decrease.
• C)the public debt will increase.
• D)the public debt will decrease.

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Definitions:

Inherently Dangerous

Activities or objects that carry a risk of harm or damage as a natural part of their existence or function.

Misrepresentation Liability

Legal accountability that arises when one party provides false information during a contract or negotiation, leading to harm or loss to another.

Vicarious Liability

A legal principle that holds an individual or entity responsible for the actions of another person, usually within the context of an employment relationship.

Operation of Law

A situation where rights or responsibilities are transferred without the direct action of the parties, often through the effect of legal statutes or regulations.