Which of the Following Statements Is True About the Public

question 105

Multiple Choice

Which of the following statements is true about the public debt and future generations?

• A) Future generations will always be worse off because they will have to pay off the public debt.
• B) Increased consumption today will lead to increases in the capital stock in the future.
• C) Future generations may be better off if the rate of return on the borrowed funds is higher than the interest rate paid to foreign residents.
• D) The public debt cannot be held by foreign residents therefore we really owe the debt to ourselves.

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Definitions:

Learning Process

The learning process involves acquiring knowledge, skills, behaviors, or attitudes through study, experience, or teaching, which leads to a change in understanding or behavior.

Mistakes

Erroneous actions or decisions due to judgment errors, lack of information, or misunderstandings, often serving as a basis for learning and improvement.

Increase Helping Behavior

Strategies or actions taken to enhance the willingness or frequency of people aiding others in need.

Influence Thinking

The act of affecting or altering someone's thought processes, decision-making, or beliefs through various means.