Incurring an Internal Debt to fiNance a War Like World

question 243

Multiple Choice

Incurring an internal debt to finance a war like World War II does not pass the true cost of the war on to future generations because

• A) the opportunity cost of wartime expenditures was borne by the generation that lived during the war.
• B) the Federal government can shift expenditures from military goods to the production of other public goods.
• C) the Federal government has the power to levy taxes to pay its debts.
• D) wartime inflation reduces the relative size of the public debt.

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