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The Two Ways in Which Deficit Spending Can Impose a Burden

Question 104

Multiple Choice

The two ways in which deficit spending can impose a burden on future generations are


A) by requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods.
B) by requiring future generations to face lower government spending and to utilize a smaller stock of human capital.
C) by substituting private goods for public goods and thereby shifting resources to foreign residents.
D) by substituting private goods for public goods and thereby benefiting only large businesses.

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