The Two Ways in Which Deficit Spending Can Impose a Burden

question 104

Multiple Choice

The two ways in which deficit spending can impose a burden on future generations are

• A) by requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods.
• B) by requiring future generations to face lower government spending and to utilize a smaller stock of human capital.
• C) by substituting private goods for public goods and thereby shifting resources to foreign residents.
• D) by substituting private goods for public goods and thereby benefiting only large businesses.

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Definitions:

Myers-Briggs Type Indicator

A psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

External Locus

Belief that external forces or factors beyond one's control dictate the outcomes of one's actions and life events.

Perception

The process of organizing and interpreting sensory information to make it meaningful.