One of the Potential Consequences of the Public Debt Is

question 93

Multiple Choice

One of the potential consequences of the public debt is that it may:

• A) Make income distribution more equitable
• B) Increase the debt burden of foreign creditors
• C) Lead to additional future taxes that reduce economic incentives
• D) Decrease interest rates and increase investment spending

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Definitions:

Compete

To engage in an effort to win or achieve something, such as a market or a contest, often against others.

Consent

Agreement, approval, or permission as to some act or purpose, given voluntarily by a competent individual.

Capital Contribution

The act of providing financial assets, such as money or property, to a partnership or company by its owners or members.

Share Losses

The decrease in the value of an individual's or entity's investment in stock or shares, typically reflected in the market price.