There is a long-term burden of government debt in a closed economy when
A) foreign owners of Canadian debt demand repayment.
B) it is no longer possible to find individuals in the private sector willing to finance the debt.
C) the burden of the debt is being borne by the current generation rather than future generations.
D) present consumption and government expenditure are not reduced because of future crowding-out.
E) the stock of physical productive capital is reduced because of crowding out.
Correct Answer:
Verified
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