Incurring an internal debt to finance a war does not pass the cost of the war on to future generations because:
A)the opportunity cost of wartime expenditures was borne by the generation that lived during the war.
B)the Federal government can shift expenditures from military goods to the production of other public goods.
C)the Federal government has the power to levy taxes to pay its debts.
D)wartime inflation reduces the relative size of the public debt.

Question

Quizplus · Accepted Answer

Incurring an internal debt to finance a war does not pass the cost of the war on to future generations because the opportunity cost of wartime expenditures was borne by the generation that lived during the war. This means that the people who were alive during the war had to sacrifice certain goods and services in order to fund the war effort, rather than passing the cost on to future generations who might not have benefited from the war.

Incurring an Internal Debt to Finance a War Does Not