Interest Payments Can Create Self-Perpetuating Debt When

question 71

Multiple Choice

Interest payments can create self-perpetuating debt when

• A) debt transfers wealth from young to old.
• B) government must borrow more to make interest payments.
• C) debt transfers wealth from old to young.
• D) government borrowing crowds out private investment.
• E) government borrowing crowds in private investment.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.