If the government borrows to purchase goods and services, today's consumption of government goods and services will be paid for by
A) today's taxpayers.
B) government employees.
C) future taxpayers.
D) today's taxpayers and tomorrow's taxpayers in even shares.

Question

Quizplus · Accepted Answer

When the government borrows to purchase goods and services, it is essentially deferring the payment to future taxpayers who will have to bear the burden of paying off the government debt with interest. Therefore, today's consumption of government goods and services will be paid for by future taxpayers.

If the Government Borrows to Purchase Goods and Services, Today's