Incurring an Internal Debt to Finance a War Does Not

question 48

Multiple Choice

Incurring an internal debt to finance a war does not pass the cost of the war on to future generations because:

• A)the opportunity cost of wartime expenditures was borne by the generation that lived during the war.
• B)the Federal government can shift expenditures from military goods to the production of other public goods.
• C)the Federal government has the power to levy taxes to pay its debts.
• D)wartime inflation reduces the relative size of the public debt.

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Decency

The standard of behavior that is considered respectful and modest by a society.

Johns

A colloquial term often used to refer to men who solicit and pay for sex with a prostitute.

Kiss

An act of pressing one's lips against the body part of another person or object, often used as a gesture of affection, greeting, or lust.