The issuance of debt involves some intergenerational transfer of income; long after the debt is issued, a new generation of taxpayers must make interest payments on the debt.

Question

Quizplus · Accepted Answer

This statement is true. When debt is issued, the current generation incur the debt while future generations will be responsible for paying back the debt through interest payments. This results in an intergenerational transfer of income.

The Issuance of Debt Involves Some Intergenerational Transfer of Income;