Practice mode Miscellaneous Economics

Why will future generations have to pay interest on today’s national debt?

Correct answer B. Budget deficits are funded with borrowed money

Explanation

Governments cover budget deficits by borrowing through bonds, and the interest on those bonds must be paid out of future tax revenue.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.