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

question 86

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 owe any interest obligations on the debt.
• D)future generations will inherit interest payments along with interest obligations.

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Definitions:

Lichen

A compound organism consisting of one or more symbiotic fungi and an alga or cyanobacterium.

Fungus

A kingdom of spore-producing organisms that feeds on organic matter, including molds, yeast, mushrooms, and toadstools.

Photoautotroph

Organisms that carry out photosynthesis, using light energy to synthesize organic compounds from inorganic substances.

Sac Fungi

A group of fungi belonging to the Ascomycota Phylum, characterized by the production of spores in special structures called asci.