Question

cause and effect. find the best match for each cause and effect. be careful: read them all first
effects
a. sometimes the government must borrow money.
b. u.s. securities are popular all over the world.
c. there is a huge national debate about government spending.
d. people and governments must make choices about spending money.
e. the government must spend money paying interest to lenders.
causes

1. money is limited.
2. there would be severe consequences if the government ran out of money.
3. the u.s. has a trustworthy reputation for paying back loans.
4. the government usually operates at a deficit.
5. people have different ideas about how the government should spend its money.

Explanation:

1. For "Money is limited", the effect is that people and governments must make choices about spending money (D), as limited resources require decisions.
2. For "There would be severe consequences if the government ran out of money", the effect is that the government must spend money paying interest to lenders (E) to avoid running out? No, re - think. Wait, if running out of money is bad, the government's deficit (cause 4) leads to borrowing (effect A). Wait, let's re - match:

• Cause 1: Money is limited. Effect: People and governments must make choices about spending money (D). Because limited money means choices are necessary.
• Cause 2: Severe consequences if government runs out of money. Effect: The government must spend money paying interest to lenders (E)? No, maybe not. Wait, the government's deficit (cause 4: The government usually operates at a deficit) leads to the government borrowing money (effect A: Sometimes the government must borrow money).
• Cause 3: The US has a trustworthy reputation for paying back loans. Effect: US securities are popular all over the world (B), as trustworthiness makes securities attractive.
• Cause 4: The government usually operates at a deficit. Effect: Sometimes the government must borrow money (A), as deficit means spending more than revenue, so borrowing is needed.
• Cause 5: People have different ideas about how the government should spend its money. Effect: There is a huge national debate about government spending (C), as different ideas lead to debate.

Answer:

1. D. People and governments must make choices about spending money.
2. E. The government must spend money paying interest to lenders. (Wait, no, earlier re - analysis: For cause 2 "There would be severe consequences if the government ran out of money", the effect should be related to avoiding that. But maybe my initial re - analysis was wrong. Let's do it properly:

• 1. Money is limited → D. People and governments must make choices about spending money (because limited money forces choices).
• 2. Severe consequences if government runs out of money → E. The government must spend money paying interest to lenders? No, maybe E is related to borrowing. Wait, no. Let's use the standard cause - effect logic:
• Cause 1: Money is limited. Effect: D (choices in spending).
• Cause 2: Severe consequences if government runs out of money. Effect: E (spend interest to lenders to not run out? Maybe not. Alternatively, cause 2: Severe consequences if government runs out of money → the government must manage its money, but E is about paying interest. Maybe I made a mistake. Let's check the options again:
• Option A: Government borrows money. Cause: Government operates at deficit (cause 4).
• Option B: US securities popular. Cause: US trustworthy (cause 3).
• Option C: National debate on spending. Cause: People have different ideas (cause 5).
• Option D: Choices in spending. Cause: Money is limited (cause 1).
• Option E: Government pays interest. Cause: Government borrows money (but there is no such cause. Wait, the causes are 1 - 5 as given. Let's list all:
• Cause 1: Money is limited. → Effect D (choices).
• Cause 2: Severe consequences if government runs out of money. → Effect E (government pays interest to lenders to ensure it doesn't run out? Maybe, as paying interest is part of managing debt to avoid running out).
• Cause 3: US has trustworthy reputation. → Effect B (securities popular).
• Cause 4: Government operates at deficit. → Effect A (borrows money).
• Cause 5: People have different ideas. → Effect C (debate on spending).

So the correct matches are:

1. D
2. E
3. B
4. A
5. C