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Large Federal Budget Deficits Are a Concern for All of the Following

Question 33

Multiple Choice

Large federal budget deficits are a concern for all of the following reasons EXCEPT:


A) large deficits create a financial burden on future generations.
B) large deficits crowd out private borrowing because there is a finite pool of dollars.
C) large deficits discourage people from spending money, which slows the economy.
D) large deficits require the government to make payments to bond holders rather than using money to meet public needs.
E) the interest payments owed on large deficits can take up a significant portion of the federal budget.

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