Incurring an internal debt to ﬁnance a war like World War II does not pass the true 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 like World War II does not pass the true 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 current generation paid the cost of the war through their sacrifice and productivity during the war, and therefore future generations are not burdened with the true cost.

Incurring an Internal Debt to ﬁNance a War Like World