Which of the following illustrates a burden of the national debt?
A) A large debt decreases the amount of capital, thereby decreasing future incomes.
B) Future generations will have to pay lower taxes to finance the national debt.
C) The current generation receives a higher level of government services.
D) The current generation pays a higher level of taxes.

Question

Quizplus · Accepted Answer

A large debt decreases the amount of capital available for investment, which can lead to lower productivity, smaller economic growth, and future incomes. It can also lead to a crowding out of private investment, which means there is less money available for private sector investment, leading to a decrease in long-term economic growth.

Which of the Following Illustrates a Burden of the National