The Most Likely Way the Public Debt Burdens Future Generations

question 121

Multiple Choice

The most likely way the public debt burdens future generations, if at all, is by

• A) reducing the current level of investment.
• B) causing future unemployment.
• C) causing deflation.
• D) reducing real interest rates.

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Definitions:

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, typically less than one year.

General Journal

A comprehensive accounting ledger that records all types of financial transactions before they are posted to more specific accounts.

General Journal

A primary accounting record used to record all types of transactions in chronological order before they are posted to individual accounts.

Unearned Items

Revenues received by a company for which the goods or services have not yet been provided or completed.