The true burden of the internal debt is the opportunity cost of the activities financed by the debt,and the burden occurs when the debt-financed activity takes place.
Opportunity costs are incurred only when real resources (factors of production)are used.The amount of that cost is measured by the other goods and services that could have been produced with those resources,but weren't.The true burden of the debt is the opportunity cost of the activities financed by the debt.

Question

Quizplus · Accepted Answer

The statement accurately describes the concept of opportunity cost and how it relates to the burden of internal debt. The true cost of the debt is not just the amount borrowed, but also the things that could have been done with those resources instead. This cost is incurred at the time the debt-financed activity occurs, and is therefore an ongoing burden on the economy.

The True Burden of the Internal Debt Is the Opportunity