Which of the following reduces 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)some current government spending benefits future taxpayers
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A high growth rate of output allows for future generations to have a larger economy from which to pay off debt. Increased savings by parents to leave larger bequests to their children reduces the need for future generations to borrow to finance their own investments. Some current government spending, such as on education and infrastructure, can benefit future taxpayers by increasing productivity and efficiency in the economy, leading to higher tax revenue and a stronger economy overall.

Which of the Following Reduces the Potential Burden of an Increase