Multiple Choice
Which of the following would NOT be an argument that government debt imposes a burden on future generations?
A) Lump-sum taxes in the future may be raised to pay higher real interest costs.
B) Higher taxes in the future could increase the average cost of distortions to the economy created by taxes.
C) Higher taxes in the future to repay government debt will transfer resources from the poor to the rich.
D) Higher government deficits resulting from increased purchases may reduce savings,causing investment to fall.
Correct Answer:
Verified
Correct Answer:
Verified
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