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Which of the Following Is NOT a Problem Caused by a Large

Question 139

Multiple Choice

Which of the following is NOT a problem caused by a large national debt?


A) The entire debt must be periodically paid off, which causes recessions.
B) Future generations may be burdened with large interest payments on current government borrowing.
C) Borrowing by the federal government might lead to reduced borrowing by households and businesses.
D) There is an opportunity cost of forgone spending on education, the environment, and other federal programs when tax dollars are used to pay interest.

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