If debt-financed less productive government spending crowds out more productive private investment,future generations will bear
A)All of the burden of the debt due to higher taxes.
B)Zero burden as a result of the debt.
C)Some of the burden of the debt due to lower productive capacity.
D)A portion of the burden of the debt relative to the population size.

Question

Quizplus · Accepted Answer

Less productive government spending crowds out more productive private investment which results in a lower productive capacity. This ultimately leads to slower economic growth and reduced opportunities for future generations. Therefore, some of the burden of the debt will be borne by them due to the lower productive capacity.

If Debt-Financed Less Productive Government Spending Crowds Out More Productive