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 be liable for the interest obligations of the national debt.
d. future generations will inherit the interest income as well as the interest obligations.
D
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Draw a graph to illustrate the effect of an increase in demand on the price and quantity in a market
What will be an ideal response?
Alphabet Bank has a required reserve ratio of 12 percent. If it receives a deposit of $210,000, how much of it must it keep in reserves?
a. $210,000 b. $25,200 c. $184,800 d. $17,500
If the Fed wants to increase the money supply, it can:
A. pass a law that interest rates rise. B. buy bonds. C. pass a law that interest rates fall. D. sell bonds.
Explain how changes in wealth, the price level, interest rates, and expectations alter the consumption curve.
What will be an ideal response?