Which Is an Important Problem Associated with the Public Debt

question 62

Multiple Choice

Which is an important problem associated with the public debt?

• A)Payments of interest on the debt lead to greater income equality.
• B)Interest payments on the debt tend to improve economic incentives to work and produce more unemployment.
• C)Government borrowing to finance the debt may increase the level of private investment.
• D)Payment of interest on the debt held by foreigners transfers real resources abroad

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Definitions:

RC Parallel Circuit

A type of electrical circuit where resistor(s) and capacitor(s) are connected in parallel, affecting the charging and discharging rate of the capacitor.

Capacitive Reactance

Opposition to AC flow in capacitors, varying inversely with the frequency of the operation and the capacitance value.

Supply Voltage

The voltage provided by a power source to operate electrical or electronic equipment.

Capacitance

The ability of a system to store an electric charge, quantitatively measured in farads (F).