The true burden of the internal debt is the opportunity cost of the activities financed by the debt, and the burden occurs when the debt-financed activity takes place.

Answer the following statement true (T) or false (F)


True

Opportunity costs are incurred only when real resources (factors of production) are used. The amount of that cost is measured by the other goods and services that could have been produced with those resources, but weren't. The true burden of the debt is the opportunity cost of the activities financed by the debt.

Economics

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