Which of the following statements about the U.S.national debt is not correct?
A)The primary economic costs of the debt are being passed on to future generations.
B)The primary burden of the debt is incurred when the deficit-financed activity takes place.
C)The national debt represents both a liability and asset to future generations.
D)Future generations will bear some of the debt burden when crowding out occurs.

Question

Quizplus · Accepted Answer

The primary economic costs of the national debt are not simply passed on to future generations. The burden of the debt is more directly related to the economic conditions and policy decisions at the time the debt is incurred and managed. Future generations may face consequences, but the primary costs and burdens are associated with the period in which the debt-financed activities occur and how the debt is managed over time.

Which of the Following Statements About the U