The most likely way the public debt burdens future generations, if at all, is by
A) reducing the current level of investment.
B) causing future unemployment.
C) causing deﬂation.
D) reducing real interest rates.

Question

Quizplus · Accepted Answer

When the government has a high level of debt, it may be more hesitant to invest in important areas such as education, infrastructure, and research and development, which could reduce the current level of investment. This could have negative impacts on future generations as they will inherit an economy with a lower level of productivity and growth potential.

The Most Likely Way the Public Debt Burdens Future Generations