The public debt of a country is not necessarily a burden on the economy to the extent that:
A)it grows less rapidly than GDP.
B)people receive good public services.
C)people are happy to hold government bonds.
D)it can be financed without adding to inflation.

Question

Quizplus · Accepted Answer

If public debt grows less rapidly than GDP, the economy can sustain the debt without it becoming a burden, as the relative size of the debt compared to the economy is decreasing.

The Public Debt of a Country Is Not Necessarily a Burden