An Increase in the National Debt Creates a Burden on Future

question 12

Multiple Choice

An increase in the national debt creates a burden on future generations because

• A)the government will have to sell off its assets to pay off the debt
• B)future tax rates will have to be increased to pay off domestic government bondholders
• C)the Fed will have to monetize the debt, which will lead to higher interest rates
• D)the capital stock will be lower than it would have been without the debt increase
• E)interest payments on the national debt will increase the primary deficit even further

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Definitions:

Self Fluctuates

The concept that an individual's perception of self or identity can change or vary over time.

Across Situations

A term indicating variability or consistency of certain behaviors or phenomena in different environments or contexts.

Self-concept

An individual's perception and evaluation of themselves, encompassing beliefs, feelings, and thoughts about one's identity and abilities.

Self-esteem

An individual's subjective evaluation of their own worth or value.