Austerity measures are often enacted in countries that suffer from large balance of payments deficits. Which of the following is NOT a negative consequence of austerity measures?
A) Deficit reduction
B) Decrease in government employment, thus increased unemployment
C) Decreased support for education and healthcare
D) Interest rate increases

Question

Austerity measures are often enacted in countries that suffer from large balance of payments deficits.  Which of the following is NOT a negative consequence of austerity measures?
A) Deficit reduction
B) Decrease in government employment, thus increased unemployment
C) Decreased support for education and healthcare
D) Interest rate increases

Quizplus · Accepted Answer

Austerity measures are often enacted as a means of reducing deficits, so deficit reduction is actually a positive consequence of these measures. The other options listed (B, C, and D) are all negative consequences of austerity measures.

Austerity Measures Are Often Enacted in Countries That Suffer from Large