According to the Text, Just as the Economy Began to Improve

question 59

Multiple Choice

According to the text, just as the economy began to improve and state revenues started increasing, a new threat arose to threaten the newly balanced budget. It was the

• A) rising interest rates that increased the cost of borrowing.
• B) increasing health care costs due to recent efforts to reform the health care system.
• C) underfunded state pension system.
• D) rising salaries of teachers.
• E) state's public unions threatening a strike.

---

Definitions:

Negotiates

The process of discussing something formally to reach an agreement or compromise.

Pays

Refers to the act of giving money in exchange for goods, services, or to fulfill an obligation.

Representative Capacity

Acting on behalf of another person or entity, holding the authority to make decisions, enter agreements, or perform actions for them.

Holder In Due Course

A legal term for a party who has acquired a negotiable instrument in good faith and for consideration, and thus has certain protections against claims and defenses that could be raised against the original issuer.