Chapter13: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 13SQ
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Question
Which statement regarding The future economic situation of the United States is most accurate?
Which is the correct answer?
Transcribed Image Text:The current taxation rate and government budget will allow the budget deficit to be paid down at a slow rate.
To keep the debt from increasing the tax rate must be decreased to stimulate spending.
Recent legislation to decrease the budget deficit through tax increases and reducing the federal budget has been
approved by Congress.
() An increase in inflation or interest rates would be a detriment to a long-term plan to decrease the budget deficit.
Because recessions move in a cycle, a future recession that would hamper decreasing the national debt is
unlikely to occur.
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