One of the potential consequences of the public debt is that it may:
A. Make income distribution more equitable
B. Increase the debt burden of foreign creditors
C. Lead to additional future taxes that reduce economic incentives
D. Decrease interest rates and increase investment spending
C. Lead to additional future taxes that reduce economic incentives
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When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the ________ part of one of the two big economic questions
A) "what" B) "how" C) "for whom" D) "where"
Selling bonds to finance new government debt leads to an opportunity cost that is
A. Greater than when government debt is financed with taxes. B. The same as financing government debt with taxes. C. Less than when government debt is financed with taxes. D. Dependent on who buys the bonds.