An increase in the national debt creates a burden on future generations because
A) the government will have to sell off its assets to pay off the debt
B) future tax rates will have to be increased to pay off domestic government bondholders
C) the Fed will have to monetize the debt, which will lead to higher interest rates
D) the capital stock will be lower than it would have been without the debt increase
E) interest payments on the national debt will increase the primary deficit even further
Correct Answer:
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Q29: Which of the following is TRUE?
A)the average
Q30: In 2013, the debt-to-GDP ratio in the
Q31: Which of the following is FALSE?
A)the estimated
Q32: Which of the following happened in response
Q33: The primary deficit is equal to
A)the total
Q35: Most debt issues by the Treasury are
Q36: Which of the following is TRUE for
Q37: A country is likely to be faced
Q38: When the U.S.Treasury engages in debt financing,
A)it
Q39: The Treasury can retire part of the
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