Which Factor Would Enhance the Government's Ability to Keep Deficits

question 36

Multiple Choice

Which factor would enhance the government's ability to keep deficits and the national debt under control over the long term?

• A) The cost of Social Security changes as baby boomers age.
• B) The cost of Medicare changes as health care costs increase.
• C) The Fed continues to keep interest rates low.
• D) Foreigners become unwilling to hold dollars.

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Definitions:

Direct Observation

A method of collecting data by watching subjects in their natural environment without any manipulation or interference.

Logical Reasoning

The process of using a logical sequence of thinking, utilizing deductive or inductive reasoning, to arrive at a conclusion or solve problems.

Direct Observation

A method of gathering data by watching behavior or events as they occur in their natural setting.

Internal Events

Psychological or physiological occurrences within an individual that are not observable by others.