If a Government Has a Difficult Time Raising Funds by Borrowing

question 78

Multiple Choice

If a government has a difficult time raising funds by borrowing, it ________, which generates ________.

• A) must print money; inflation
• B) must print money; high real interest rates
• C) raises taxes; inflation
• D) raises taxes; unemployment
• E) All of these answers are correct.

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Definitions:

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Interindividual Variability

The fact that people do not age in the same way or at the same rate.

Multidirectionality

In the context of cognitive development, the fact that some aspects of intellectual functioning may improve while others remain stable or decline.

Plasticity

The capacity of the brain to change and adapt structurally and functionally in response to experiences or trauma.