Which of the Following Does Not Reduce the Potential Burden

question 25

Multiple Choice

Which of the following does not reduce the potential burden of an increase in debt on future generations?

• A)the growth rate of output is high
• B)in response to increased debt,parents save more to leave their children larger bequests
• C)budget deficits raise interest rates
• D)All of the above are correct.

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Definitions:

Red Income

This term is also not recognized in standard economic discussions and might be used in a specific context that is not universally defined.

Ambrosia

Often referred to in ancient texts, ambrosia is described as a divinely nourishing substance associated with immortality.

Blue Income

Similar to "Red Income," this term does not have a recognized definition in economics and likely pertains to a specific, non-standard use.

Ambrosia

In mythology, it is the food or drink of the gods, thought to confer immortality, but in a general context, it refers to something very pleasing to taste or smell.