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If the Government Issues Securities in Order to Finance Current

Question 67

Multiple Choice

If the government issues securities in order to finance current consumption, then:


A) it may be a burden to future generations if the securities were bought by foreign interests.
B) it may be a burden as current generations need to pay for the interest repayments without any improvement in the country's productive capacity.
C) it will not be a burden if the securities were bought by foreign interests.
D) it will not be a burden if the debt is held domestically.

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