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:

Simple Linear Regression

A statistical method for examining the linear relationship between two quantitative variables; one variable is used to predict the outcome of another.

Probabilistic Model Equation

A mathematical representation of a statistical model that incorporates randomness and accounts for the probability of various outcomes.

Deviation

The difference between a observed value and some reference point, often the mean of the data set.

Regression Line

A straight line that best fits the data points in a scatter plot, showing the relationship between an independent variable and a dependent variable.