Which of the Following Is True of Debt Financing

Multiple Choice

Which of the following is true of debt financing?

A) Elected political officials will find debt financing attractive because it allows them to provide voters with visible current benefits while pushing the more visible costs into the future.
B) Debt financing is unattractive to elected political officials because voters recognize that excessive debt will lead to the future collapse of the economy.
C) Debt financing is attractive to elected political officials because countries with a higher debt to GDP ratio generally grow more rapidly.
D) Elected political officials will be reluctant to run budget deficits  because they recognize that taxes will have to be raised in the future to pay the interest on the larger amount of outstanding debt.