Comparing the fiscal imbalance for the current generation versus future generations, it is the case that
A) each generation pays all of its fiscal imbalance.
B) future generations pay a larger share of the fiscal imbalance.
C) each generation pays half of the fiscal imbalance.
D) the current generation pays a larger share of the fiscal imbalance.

Question

Quizplus · Accepted Answer

The fiscal imbalance refers to the difference between the amount of government spending and the amount of revenue generated through taxes and other sources. If the government spends more than it collects, it creates a deficit or a fiscal imbalance. In general, future generations will bear a larger share of the fiscal imbalance since they will have to pay back the debt and interest accrued by the current generation. Therefore, choice B is the correct answer.

Comparing the Fiscal Imbalance for the Current Generation Versus Future