The Larger the Amount of Outstanding Public Debt

question 272

Multiple Choice

The larger the amount of outstanding public debt:

• A)the lower the tax revenue the government must collect.
• B)the more spending the government can afford.
• C)the smaller the crowding out of private investment spending.
• D)the larger the fraction of the federal budget deficit that must be devoted to interest payments.

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Definitions:

Drawings

Withdrawal of cash or other assets from an unincorporated business for the personal use of the owner(s).

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Market Value

The existing cost for buying or selling an asset or service on the market.

Not-For-Profit

Organizations that operate for purposes other than generating profit, often focusing on social, educational, or charitable endeavors.