The Government Deficit Does Not Place a Burden on Future

question 106

Multiple Choice

The government deficit does not place a burden on future generations when

• A) taxes are eventually raised to pay interest on the additional debt.
• B) the borrowed funds are used for productive government investment.
• C) borrowing from foreigners offsets the deficit, so that private investment is not crowded-out.
• D) the borrowed funds are transferred to the purchase of nondurable consumer goods.

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Definitions:

Positive Events

Occurrences or experiences that provoke a beneficial impact on one's emotions, well-being, or psychological state.

Negative Events

Unfavorable or harmful occurrences that can impact an individual's mental or physical well-being.

Stress Reaction

The body's response to a threat or challenge, which may involve physical, mental, or emotional changes.

Stressors

External stimuli or events that cause stress to an individual, potentially leading to physical or emotional strain.