Which of the Following Is a Reason Why We Should

question 93

Multiple Choice

Which of the following is a reason why we should consider the federal national debt a problem?

• A)The federal government is in danger of defaulting on its debt.
• B)If the debt drives up interest rates,crowding out will occur.
• C)If the debt was incurred to finance improvements in infrastructure,crowding out will occur.
• D)If the debt was incurred to finance research and development,crowding out will occur.

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Definitions:

Industry Growth

The rate at which a specific industry expands its capacity, production, or market size over a period.

Buyer Power

The influence and negotiating power that consumers or purchasing agents have over sellers in an economic marketplace.

Decrease Buyer Power

Strategies or market conditions that reduce the negotiation leverage of buyers, enhancing the seller's position.

Command A Higher Price

Being able to sell goods or services at a price above the average due to perceived added value, quality, or brand reputation.