The Idea That a Large Public Debt Is "Mortgaging the Future

question 19

Multiple Choice

The idea that a large public debt is "mortgaging the future of our children and grandchildren" is misleading because

• A)it is the Federal Reserve that will be responsible for making interest payments on the debt.
• B)future generations will have to bear the opportunity costs of the resources that are used today.
• C)future generations will not be liable for the interest obligations of the national debt.
• D)future generations will inherit the interest income as well as the interest obligations.

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Definitions:

Effects On Other Parts

The impact that changes or actions in one segment or component have on other segments or components within a system or organization.

Proceeds From Sales

The total amount of money received by a company from selling goods, services, or assets.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.