10. Study Questions and Problems #10 Evaluate the following statement explaining why our grandchildren may not suffer the entire burden of a federal deficit. True or False: The burden of the national debt on present and future generations depends on who owns the accumulated national debt. If the debt is owned internally, then debt payment is simply a transfer of income between households in the nation in the future. True O False portion of available tax If, over time, real government budget deficit remains unchanged, and national debt continues to increase, a dollars will be spent on interest payments on the debt, and as a result, can be spent on highways, health care, defense, and other public-sector programs.

10. Study Questions and Problems #10 Evaluate the following statement explaining why our grandchildren may not suffer the entire burden of a federal deficit. True or False: The burden of the national debt on present and future generations depends on who owns the accumulated national debt. If the debt is owned internally, then debt payment is simply a transfer of income between households in the nation in the future. True O False portion of available tax If, over time, real government budget deficit remains unchanged, and national debt continues to increase, a dollars will be spent on interest payments on the debt, and as a result, can be spent on highways, health care, defense, and other public-sector programs.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Federal Budgets And Public Policy

Section: Chapter Questions

Problem 3.8P

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