The "real burden" of the debt is directly related to
A)The idea of opportunity cost.
B)The difference between internally held debt and externally held debt.
C)The relationship between the Treasury and the Federal Reserve System.
D)How transfers redistribute income.

Question

Quizplus · Accepted Answer

The idea of opportunity cost helps to understand the "real burden" of the debt. Opportunity cost involves the idea that something must be given up in order to obtain something else. In the case of the national debt, the government must pay interest on the debt, which means that resources are being diverted away from other uses. This results in a real burden on the economy.

The "Real Burden" of the Debt Is Directly Related to