Incurring an Internal Debt to Finance a War Does Not

Multiple Choice

Incurring an internal debt to finance a war does not pass the cost of the war on to future generations because:

A) the opportunity cost of wartime expenditures was borne by the generation that lived during the war.
B) the Federal government can shift expenditures from military goods to the production of other public goods.
C) the Federal government has the power to levy taxes to pay its debts.
D) wartime inflation reduces the relative size of the public debt.