Which of the following is true of deficit spending and government debt?
A) The opportunity costs of government spending must be incurred today and cannot be passed on through deficit spending.
B) Because of the national debt, future generations will incur liabilities without any corresponding benefits.
C) Financing government spending with debt allows the government to pass the opportunity costs of government spending along to future generations.
D) All of the public debt is owed to foreigners because the people who pay taxes are U.S. citizens.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true of deficit spending and government debt?
A) The opportunity costs of government spending must be incurred today and cannot be passed on through deficit spending.
B) Because of the national debt, future generations will incur liabilities without any corresponding benefits.
C) Financing government spending with debt allows the government to pass the opportunity costs of government spending along to future generations.
D) All of the public debt is owed to foreigners because the people who pay taxes are U.S. citizens.

Which of the Following Is True of Deficit Spending and Government