When Government Debt Is Financed Internally, Future Generations Will

question 33

Multiple Choice

When government debt is financed internally, future generations will

• A) inherit a higher tax liability without additional interest income.
• B) inherit neither higher taxes nor additional interest income.
• C) inherit both higher taxes and additional interest income.
• D) receive lower interest income and a lower tax liability.

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Definitions:

Closed Shops

Workplaces where all employees must be members of a specific labor union as a condition of employment, effectively limiting hiring to union members only.

Social Trend

A general direction in which society is changing, often identified by shifts in behavior, attitudes, or cultural norms.

Early Marriages

Marriages that take place at a younger age than is typical in a given society, often associated with various social, cultural, and economic factors.

Religious Activities

Religious activities encompass various practices, ceremonies, and rituals performed in devotion to or in worship of a deity or deities.