Which of the following reduces the potential burden of an increase in debt on future generations?

Question

Quizplus · Accepted Answer

All of the choices mentioned can contribute to reducing the potential burden of an increase in debt on future generations. A high growth rate of output can lead to increased tax revenues and ensure that future generations can pay off the debt without significant difficulty. When parents save more to leave larger bequests, this can provide a financial buffer for future generations. Additionally, if some of the current spending benefits future taxpayers, this can offset the burden of the debt by providing long-term benefits that will outlast the debt.

Which of the Following Reduces the Potential Burden of an Increase